Lay says he sold Enron stock in plan to leave

Kenneth Lay

WASHINGTON (CNN) -- Former Enron Chairman Kenneth Lay told attorneys he sold his stock in Enron last year in preparation for his planned departure from the company, not because he had negative information about the company, according to a document released this week by a House committee.

In an interview conducted five weeks ago by attorneys hired by a special committee formed by the Enron board of directors, Lay said he had received an attractive offer of employment from an unnamed company in 2001 and liquidated shares in Enron prior to announcing his resignation.

But when chief executive Jeffrey Skilling announced his own departure from Enron in July 2001, Lay was forced to stay and continue running the company, Lay said during the January 16 interview.

VIDEO/AUDIO   •  Senate unit faults Enron board   •  Corporate corruption in America  MORE STORIES   •  3 Britons charged in Enron fraud   •  Bush pushes for tougher corporate rules   •  Playboy exposes Enron workers  EXTRA INFORMATION   •  Document: Powers report 9.5MB (PDF)   •  CNN/Money Special Report: Your 401(k)   •  Timeline: Shredding through history  RESOURCES   •  In-Depth: The end of Enron?   •  TIME.com: Inside the scandal

The 17-page document was among more than 100 pages released by the House Energy and Commerce Committee on Tuesday. It details Lay's explanation of partnerships Enron entered into as part of its off-balance sheet financing practices.

Lay has denied knowledge of those partnerships. He told the investigators, hired to probe the company's bankruptcy, that he was led to believe all the deals were legitimate.

Enron collapsed after disclosing in October that its associated partnerships concealed more than $1 billion in debt. The company -- once ranked the country's seventh-largest -- filed for bankruptcy December 2 in the largest-ever bankruptcy case in U.S. history.

Lay said he felt Skilling had undercut the company when he told the Wall Street Journal he was leaving Enron because its stock was dropping in value and he was under tremendous pressure.

Skilling had told Lay and other board members that he was leaving to spend more time with his family, and a press release issued by the company announcing the resignation said Skilling was leaving for personal reasons.