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The Formation Of Enron Jurors' Opinions Is Under Scrutiny

By Carrie Johnson
Washington Post Staff Writer
Tuesday, February 21, 2006; Page D01

HOUSTON, Feb. 20 -- Everybody, it seems, has an opinion about Enron Corp.

But the one that counts will be reached by 12 people who will decide the fate of the energy trader's former leaders.

The jurors are an eclectic bunch: eight women and four men, three self-identified Hispanics and one Asian. It is a well-educated panel that includes an engineer, a courtroom manager, and employees of oil industry giants Royal Dutch Shell Group and Schlumberger Ltd.

Four alternates are standing by in case one of the regular jurors becomes ill or otherwise cannot continue through the trial of former chairman Kenneth L. Lay and former chief executive Jeffrey K. Skilling, which is likely to extend at least four months.

The way the Enron panel goes about its work will fuel a long-running debate about the ability of average citizens to assess responsibility for complex business frauds -- and will carry powerful implications for the way prosecutors bring future white-collar cases, according to experts on corporate crime.

"Juries can understand lies, cheating and stealing," said Ellen S. Podgor, a visiting law professor at Stetson University and co-author of a blog on white-collar cases. "What they can't understand is complex accounting practices. You have to simplify it for the jury."

That is exactly where the prosecution has focused its efforts. "It is not about accounting. It is about lies and choices," Assistant U.S. Attorney John C. Hueston told the jurors in opening arguments.

In contrast, defense lawyers have attempted to lead the jury down circuitous paths of accounting treatment, introducing audio and video clips full of arcane detail about complex business issues.

Defense lawyers also have signaled that they may make the jury itself the basis of appeals if the trial goes against their clients. Almost from the start, they raised questions about whether jurors from Houston, where thousands of workers lost jobs and retirement savings in Enron's collapse, could hear the case with open minds.

Daniel M. Petrocelli, lead lawyer for Skilling, and Michael Ramsey, chief attorney for Lay, repeatedly tried to get the case moved out of town. They recently asked the judge to preserve completed jury questionnaires, signaling the process of selecting the jury is an issue they are likely to revisit on appeal.

Several of the 12 jurors and four alternates expressed clear opinions and more than passing familiarity with Enron, according to a transcript of the jury selection process. Their identities have not been released under the order of U.S. District Judge Simeon T. Lake III.

Still, the transcript offers clues about the history and sometimes negative impressions that jurors have brought to the courtroom.

One juror called former Enron executive and likely government witness Sherron Watkins "brave" for writing an anonymous memo raising questions about the company's accounting practices. During jury selection, she told the judge she was surprised that Lay and Skilling faced trial together.

"I'm a little confused that you're trying them together," she said. "I mean, one could be innocent, and one could be guilty. I don't know that they're in this together. I don't get that feeling at all."

Another panel member called the defendants "suspect" in his questionnaire, the transcript said. About Lay, who maintains that for most of his tenure he handled high-level political and diplomatic relations rather than financial details, the juror wrote, "If he did not know what was going on in his company, he was really a poor manager or leader."

A finance worker who reported being laid off four or five times in recent years expressed similar thoughts. "I feel like, if a person is responsible for a company, they should know what's going on with them."

He also expressed anger over the job loss at Enron and blamed the company's demise for the 2002 Sarbanes-Oxley Act, corporate responsibility legislation that resulted in a heavier workload for the juror.

The engineer, who has taken copious notes so far in the trial, said of many corporate executives in pretrial questioning: "They're trying to meet the bottom line. . . . I think they're stretching the legal lines on it."

Defense lawyers challenged the fairness of that prospective juror outside his earshot, but the judge rebuffed them after the juror said he could be fair.

A female juror reported during the selection process that she had interacted with Lay's sister Sharon, who showed up in the spectator gallery after the trial began. Another young female juror attends Second Baptist Church, whose pastor appears on a list of character witnesses for Lay. Lay also is a member of her parents' country club, she said.

In her questionnaire, she wrote of the defendants, "I think they probably knew they were breaking the law."

Other panelists include an Indian man who came to the United States in 1990, a woman whose husband had been an official with the Houston Police Department, and another woman who told the judge that her law firm had to write off "a substantial amount" of unpaid fees when Enron went bust. 

So far, to the delight of the efficiency-minded judge, jurors have arrived on time and sharply dressed, signaling they are taking their job professionally. For Valentine's Day last week, the women wore bright red shirts or jackets and the men donned red ties in a show of esprit de corps in what experienced lawyers say could be a negative early sign for the defense.

"One of the things that a defense lawyer does not like is cohesiveness among the jury," said David Berg, a Houston attorney and author of "The Trial Lawyer: What It Takes to Win."

"What you want is independent thought," he said.

© 2006 The Washington Post Company

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