As other commentators have noted, meeting with Ken Lay at the height of the California energy crisis is a bit like meeting with Osama bin Laden the afternoon of 9-11.

Yet Arnold Schwarzenegger did just that. There has been strong evidence of such a meeting for some time, yet Schwarzenegger says he doesn't "remember" the meeting. He doesn't deny it. Just doesn't "remember."

Do you believe him?

Greg Palast, a former government investigator of fraud and racketeering, gets some new documents:

It's not what Arnold Schwarzenegger did to the girls a decade back that should raise an eyebrow.  According to a series of memoranda our office obtained today, it's his dalliance with the boys in a hotel room just two years ago that's the real scandal.

The wannabe governor has yet to deny that on May 17, 2001, at the Peninsula Hotel in Los Angeles, he had consensual political intercourse with Enron chieftain Kenneth Lay.  Also frolicking with Arnold and Ken was convicted stock swindler Mike Milken.

Now, thirty-four pages of internal Enron memoranda have just come through this reporter's fax machine tell all about the tryst between Maria's husband and the corporate con men.  It turns out that Schwarzenegger knowingly joined the hush-hush encounter as part of a campaign to sabotage a Davis-Bustamante plan to make Enron and other power pirates then ravaging California pay back the $9 billion in illicit profits they carried off.

Here's the story Arnold doesn't want you to hear.  The biggest single threat to Ken Lay and the electricity lords is a private lawsuit filed last year under California's unique Civil Code provision 17200, the "Unfair Business Practices Act."  This litigation, heading to trial now in Los Angeles, would make the power companies return the $9 billion they filched from California electricity and gas customers.

It takes real cojones to bring such a suit.  Who's the plaintiff taking on the bad guys?  Cruz Bustamante, Lieutenant Governor and reluctant leading candidate against Schwarzenegger.

Now follow the action.  One month after Cruz brings suit, Enron's Lay calls an emergency secret meeting in L.A. of his political buck-buddies, including Arnold.  Their plan, to undercut Davis (according to Enron memos) and "solve" the energy crisis — that is, make the Bustamante legal threat go away.

How can that be done?  Follow the trail with me.

Consumer watchdog Doug Heller with the nonpartisan (no position on recall or candidates) Foundation for Taxpayer and Consumer Rights:

Consumer advocate with the Santa Monica-based Foundation for Taxpayer andConsumer Rights, Heller said today: "Internal Enron e-mails we haveobtained confirm that Schwarzenegger was among a small group of executiveswho met with then-Enron head Ken Lay at the posh Peninsula Beverly Hills hotel in May of 2001. The meeting with Enron occurred ten days after rolling blackouts darkened California; Schwarzenegger has previously said that he does not remember such a meeting. You don't meet with America's most well-known corporate crook in the middle of California's biggest financial disaster and not remember. Schwarzenegger should come clean about what happened at that meeting and if he shares Lay's views on energy regulation.