HOUSTON -- Lawyers for Enron founder Kenneth Lay on Monday seemed to weaken a former Enron treasurer's account that Lay lied to employees about Enron's financial health in October 2001.

Last week, Ben Glisan Jr. testified that he told Lay that month that bankruptcy was inevitable for Enron.

But defense attorney Bruce Collins produced a corporate secretary's notes from an Enron board meeting. They showed that Glisan told directors -- including Lay -- that Enron's liquidity was adequate.

They also showed that Glisan told directors Enron had immediate access to $1.5 billion in cash -- and that he said more could be obtained.

Glisan is the government's last major witness in the federal fraud and conspiracy trial of Lay and former Enron CEO Jeffrey Skilling in Houston.

Both defendants intend to testify, with Skilling expected to be the first of the two in the witness stand.

Skilling and Lay are on trial in a Houston federal court on fraud and conspiracy charges.

Skilling faces 31 counts of fraud, conspiracy, insider trading and lying to auditors for allegedly lying about Enron's financial strength.

Lay faces seven counts of fraud and conspiracy for perpetuating the alleged scheme after Skilling resigned in August 2001.

Both men have pleaded not guilty.

If convicted, each could face decades in prison and millions of dollars in penalties.