Ex-Kmart CEO faces cross-examination

ANN ARBOR, Mich. -- The former head of the Kmart retail chain is back on the witness stand for cross-examination from a government lawyer as his trial on civil fraud charges moves closer to a conclusion.

Alan Lieberman of the Securities and Exchange Commission told a judge that his questions Thursday will center on Charles Conaway's credibility.

The SEC claims Conaway withheld significant information about Kmart's finances in November 2001, two months before a bankruptcy filing.

Conaway repeatedly has denied misleading investors and his board about the retailer's health. Kmart hired Conaway in 2000, hoping he would turn around the company.

Closing arguments likely will be Friday.

Kmart now is part of Sears Holdings, based in Hoffman Estates.