Former Enron Chairman and Chief Executive Kenneth Lay has pleaded not guilty to 11 criminal charges filed against him in a federal indictment related to the company's collapse into bankruptcy.
Mr Lay entered his plea in federal court in Houston today, just hours after surrendering to federal authorities on charges that include bank and securities fraud and making false statements while the energy powerhouse collapsed into bankruptcy.
Lay could face up to 175 years in jail and $5.75 million in fines if convicted on all counts. Bail was set at $500,000.
Mr Lay, a friend to President George W. Bush appeared calm and relaxed as he entered FBI offices this morning.
"You guys are up early," the 62-year-old Mr Lay said as he strode past a pack of about 50 reporters and news cameras gathered in front of the FBI offices. "Nice of you all to show up this morning."
After about 20 minutes inside the FBI offices, where he was fingerprinted and processed, Mr Lay emerged in handcuffs and was taken to a federal court house.
The 11 counts against Lay where detailed in a 65-page indictment unsealed by the US Justice Department. They were added to an earlier indictment against Mr Jeff Skilling, who was Mr Lay's hand-picked successor as CEO, and former chief accounting officer Mr Rick Causey, indicating that they would be tried together.
Mr Lay's attorney, Mr Mike Ramsey, said he would seek a speedy trial for his client and may try to separate his case from those of Mr Skilling and Mr Causey.
Mr Ramsey said his client had been duped by his Enron underlings.
"He (Lay) didn't have any idea of the depth of the problem until after they filed for bankruptcy," Mr Ramsey said. "At a company as big as Enron, you have to trust someone."
Houston-based Enron was the seventh-largest publicly-owned company by revenue in the US before it spiralled into a then-record bankruptcy in the final months of 2001.
Disclosures that the company hid billions of dollars in debt and burnished its financial statements through the use of complicated, off-the-books transactions ultimately prompted its swift failure.
As has been the pattern with most of the 21 other ex-Enron employees charged with crimes, the US Securities and Exchange Commission also filed civil charges against Mr Lay.