Former Kmart CEO testifies in federal civil trial

New York City The former CEO of Kmart Corp. is testifying in his own defense in federal court in Ann Arbor, Mich., in a lawsuit brought by the Securities and Exchange Commission, according to the Associated Press.

The civil trial against Charles Conaway has entered its eighth day. He was the first witness Wednesday.

Conaway is accused of misleading investors and the SEC about Kmart's health before the company was forced into bankruptcy in January 2002. He denies the allegations.

If the SEC wins the case, Conaway could be barred from working in management at publicly traded companies.