Lay 'too busy' to spot law break

Ken Lay said he did not spend much time on his personal finances

Former Enron boss Ken Lay has admitted breaking an agreement not to buy shares with bank loans - but said he couldn't remember being told about the rule.

Mr Lay, accused of lying about his personal finances, told a US court he did not intend to defraud the banks from whom he borrowed $75m (£40m).

"It was not part of my consciousness at the time," he said.

The Houston trial is going on as the jury in the separate Enron trial entered its fourth day of deliberations

In that case Mr Lay and Jeffrey Skilling, who ran Enron before it went bankrupt, face between 20 and 30 years in federal prison if convicted.

'Too busy'

In Mr Lay's personal trial, he is accused of obtaining the bank loans and then reneging on a deal not to use the money to buy shares.

Earlier the court heard that using more than 50% of a loan to buy shares was an offence under federal laws adopted after the 1929 stock market crash.

His personal banker gave evidence that the rules had been explained to the former Enron boss.

But, on the witness stand, Mr Lay said he "could not recall" anyone telling him he was not complying with the agreements.

"I am not saying we were in compliance. I am just saying my staff and I were not aware of that," he said.

"I regret that I didn't have a lot more time to spend on my personal matters and perhaps this is one of the consequences of that."

The case is being heard by a judge, who will not give his ruling until a verdict has been reached by the jury in the Enron case.

Staff blamed

Mr Lay faces six counts of conspiracy and fraud and Mr Skilling faces 28 counts of conspiracy, fraud and insider trading in the Enron trial.

Mr Lay was chairman and CEO of Enron, while Mr Skilling is a former CEO.

The energy company went bankrupt in December 2001, causing 21,000 people to lose their jobs.

Mr Lay and Mr Skilling, 52, both say other staff were to blame and that they were kept in the dark.