Skilling defends his sale of Enron stock

Former Enron chief executive Jeffrey Skilling has defended his sale of millions of dollars in Enron stock.

Former Enron chief executive Jeffrey Skilling has defended his sale of millions of dollars in Enron stock.

Sean Berkowitz, head of the Enron Task Force, accused Mr Skilling during cross examination of discussing with former Enron chairman Kenneth Lay a whistle-blower's note about possible accounting fraud at Enron shortly before Mr Skilling sought to sell 200,000 shares of stock.

Mr Skilling said he had no idea the company had begun an internal investigation into accounting issues.

The meeting between Mr Lay and Mr Skilling took place on August 22nd, 2001, Mr Berkowitz said, a week after Mr Skilling resigned from Enron and whistle-blower Sherron Watkins sent Mr Lay an e-mail citing financial abuses in the company.

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Mr Skilling denied Mr Lay told him about the letter or that Mr Lay was scheduled to meet with Mr Watkins later that same day.

"I didn't hear about it, the note, until it was published in the newspapers that following January," Mr Skilling said.

Mr Skilling faces 28 charges of conspiracy, fraud and insider trading linked to the collapse of the Houston company in December 2001 in what was then the largest ever US bankruptcy.

He is being tried alongside former Enron chief executive and chairman Mr Lay (64) who faces six charges of conspiracy and fraud.

Enron collapsed after its use of off-balance sheet deals to hide billions of dollars in debt while propping up debt was revealed.