Ann Arbor, Michigan – Former Kmart CEO admits his mistakes in leading company but he said that he did not profit from the collapse into bankruptcy.

Charles Conaway testified in federal court Wednesday as part of the effort to prevent losing millions of dollars in penalties for misleading investors about the financial standing of Kmart in 2001.

Conaway said that he acted in Kmart’s best interest.

The Securities and Exchange Commission said that Conaway failed to disclose that Kmart was delaying payments to suppliers to save on cash, months before they filed for bankruptcy. In June, a federal jury in Ann Arbor found him liable in a civil trial.

The hearing on the trial’s penalty phase resumes Thursday.

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