U.S. trims charges against Enron's Lay, Skilling

HOUSTON, Mar 28 (Reuters) U.S. prosecutors dropped a handful of charges against former Enron CEOs Ken Lay and Jeffrey Skilling today as they rested their case against the two men accused of covering up the company's poor financial health.

Prosecutors asked U.S. District Court Judge Sim Lake to dismiss three charges brought against Skilling and one charge brought against Lay because they had not presented any evidence regarding those counts during the two months they laid out case. The judge agreed.

Skilling, 52, now faces 28 counts of conspiracy, fraud and insider trading and Lay, 63, faces six counts of conspiracy and fraud linked to the company's collapse into bankruptcy in December 2001.

Both men have pleaded not guilty to any crimes at the company.

They could face decades in prison if found guilty.

The charges dropped were two counts of securities fraud and one count of making false statements to auditors that had been lodged against Skilling and one count of securities fraud against Lay.

Enron, which at its height was the seventh largest U.S. company, was the first in a series of financial scandals to rock Wall Street that prompted the implementation of stronger disclosure regulations.

REUTERS PDS RN0128