Skilling says he didn't tailor testimony to thwart allegations

HOUSTON -- Former Enron Corp. Chief Executive Jeffrey Skillingdenied on Monday that he had tailored his testimony to underminegovernment allegations that he knew his company resorted toaccounting tricks and other fraud to post impressive results.

The ex-CEO, in the 12th week of his fraud and conspiracy trialalongside Enron founder Kenneth Lay, reiterated he had nothing tohide as his cross-examination by prosecutor Sean Berkowitz began.

"I don't think it's a question of tailoring your testimony,"Skilling said. "I will respond to your questions to the best of myability."

He said his testimony was not rehearsed, though he has spent yearspreparing to be his own most important witness.

When asked if he has been counseled by a trial consultant on bodylanguage, communicating effectively and how to be persuasive,Skilling replied, "Communicating effectively, yes."

The ex-CEO was matter-of-fact rather than openly combative, thoughBerkowitz at times cut him off. Prosecutors allege Skilling and Layrepeatedly lied to investors and employees about Enron's health,spouting false optimism that hid weak business ventures and usingaccounting tricks that hid debt and inflated profits.

The two defendants say no fraud took place, and the companyspiraled into bankruptcy proceedings in December 2001 because of badpublicity and lost market confidence.

On Monday, Berkowitz challenged several statements Skilling madelast week during initial questioning by his lead attorney. Amongthose were Skilling's insistence that his Enron stock sales thatgrossed $63 million in 2000 and 2001 were proper, and his assessmentof the worth of Enron's hodgepodge of international assets when heabruptly resigned from the company in mid-August 2001.

He denied on Monday that he advised his ex-wife, Susan Skilling,and his then-girlfriend, Rebecca Carter -- now his wife -- to sellEnron shares in October and November 2000. He said he didn't know hisex-wife exercised Enron options that October for $14 million, andCarter sold $1.6 million in shares the next month.