Called to Account

SPENCER MICHELS: After turning himself into the FBI, 50- year-old former Enron CEO Jeffrey Skilling was escorted in handcuffs to a Houston federal courthouse. Today's indictment of Skilling on 35 counts of fraud, insider trading, and lying about Enron's finances also had new charges against Richard Causey, Enron's former chief accounting officer. Justice Department officials said Skilling and others wove a web of lies.

JAMES COMEY, Deputy Attorney General: The indictment charges that Mr. Skilling, Mr. Causey, and other Enron executives oversaw a massive conspiracy to cook the books of that company, and to create the illusion-- the illusion-- that it was a robust, growing company with limitless potential, when in truth and in fact, as we all know, and as Skilling and Causey and their co-conspirators knew then, Enron was an increasingly troubled business kept afloat only by a lifeline of gimmicks and maneuvers, gimmicks and maneuvers that amounted to an out-and-out fraud.

SPENCER MICHELS: Skilling and Causey were also charged with enriching themselves by selling millions of dollars of Enron stock before the company's troubles became public. After serving as Enron's longtime number two, in February 2001, Skilling replaced Kenneth Lay as CEO of the Houston-based energy trading giant. He resigned just four months before Enron filed for bankruptcy, in December 2001.

On Wall Street, the billion- dollar company's stock plummeted. Tens of thousands of workers lost their jobs and their pensions, too. The Enron scandal led to a congressional investigation into corruption in corporate America. Testifying two years ago before congress, Skilling insisted he had no knowledge of, or involvement in, Enron's financial troubles at the time.

JEFFREY SKILLING: I was not aware of any financing arrangements designed to conceal liabilities or inflate profitability.

SPENCER MICHELS: After Skilling pleaded "not guilty" today, and was released on $5 million bail, his attorney Dan Petrocelli told reporters his client had passed a lie detector test.

DAN PETROCELLI: He was asked a number of controlled questions, including -- including whether he was aware of any improper financial transactions that were presented to or approved by the board of directors, passed with flying colors, no hesitation ,and the government knows it. They know they don't have a case against this man. And he is a victim.

SPENCER MICHELS: Skilling is the latest and highest ranking of dozens of Enron executives to face criminal charges. Last month, Andrew Fastow, Enron's former chief financial officer, pleaded guilty and agreed to cooperate with prosecutors. So far, former CEO Kenneth Lay has not been charged.