First Enron criminal trial nears

Former Enron boss Andrew Fastow could play a key role in the trial

The first criminal trial involving former Enron staff since the firm's collapse is set to begin.

Two employees of the failed US energy giant and four Merrill Lynch executives face criminal charges relating to an Enron transaction in Nigeria in 1999.

The trial, one of three pending against Enron staff, could shed light on how the US Justice government will pursue its case against top Enron staff.

14 people have so far pleaded guilty to crimes relating to Enron's collapse.

Former chairman Ken Lay and former chief executive officer Jeffrey Skilling are facing multiple criminal charges arising out of the firm's debt-laden collapse in December 2001.

Landmark trial

A jury was due to be selected on Monday for the landmark trial, which surrounds Enron's sale of barges to Merrill Lynch five years ago.

Prosecutors claim the transaction was a loan disguised as a sale.

They allege that Enron executives told the investment banking giant that the firm or another party would buy the barges back after six months at a significant premium.

I think this trial is going to set the stage for all the cases coming down the line Gene Murphy, Bryan Cave

Enron used the proceeds of the deal to help meet earnings targets, prosecutors say.

Andrew Fastow, Enron's former chief financial officer who pleaded guilty to fraud earlier this year, could play a key role in the trial.

Prosecutors claim Fastow gave assurances to Merrill Lynch executives about the deal and subsequently repurchased the barges through partnerships he controlled.

As part of his guilty plea, Fastow agreed to co-operate with the US Government's Enron taskforce.

Dan Boyle, Enron's former finance director, is charged with lying about the transaction, as well as conspiracy and wire fraud.

Also on trial are former Enron accountant Sheila Kahanek and former Merrill Lynch bankers Daniel Bayly, Robert Furst, William Fuhs and James Brown.

"I think this trial is going to set the stage for all the cases coming down the line," Gene Murphy, a litigator with law firm Bryan Cave, told Reuters news agency.

Five former executives at Enron's internet broadband unit are scheduled to go on trial together next March.

Enron filed for bankruptcy in December 2001.