http://ftalphaville.ft.com/blog/2010/03/12/173241/repo-105/
In a statement, Mr Fuld’s lawyer wrote: “Mr Fuld did not know what those transactions were – he didn’t structure or negotiate them, nor was he aware of their accounting treatment,” his attorney wrote in a statement.
If I recall, CEO has a fiduciary duty to what's signed off. That won't hold up in court.