Lay And Skilling Convicted

by Glen Shapiro, LawAndTax-News.com, New York

29 May 2006

The jury in the four-month trial of former Enron chairman Kenneth Lay and former chief executive Jeffrey Skilling last Thursday found the two men guilty.

Lay was convicted on six counts of conspiracy and fraud, and US District Judge Sim Lake added another four counts of bank fraud and making false statements to banks to his convictions.

Skilling, meanwhile, was found guilty on 19 of 28 counts of conspiracy, fraud, insider trading and misleading the firm's auditors.

Although the two men face more than a century and a half in prison time each, observers have suggested that they are unlikely to receive the maximum sentences when they are delivered by Judge Lake on September 11.

Speaking outside the courtroom, Lay stated that he was "shocked" by the jury's decision, adding: "This is not the outcome we expected."

Skilling's lawyer reportedly stated that his client was planning to launch a "full and vigorous" appeal.

Commenting on the verdict, SEC Chairman Christopher Cox observed that:

"The government's successful prosecution of Kenneth Lay and Jeffrey Skilling is a victory for the shareholders and employees of Enron and the American public. We applaud the work of the Department of Justice, the Enron Task Force, the FBI, the trial team, and all of the professionals who have devoted years of their lives to the achievement of this milestone in securities law enforcement."

"The verdict makes clear that high level corporate executives who deceive the investing public for personal gain will be held fully accountable. The result in the Enron criminal trial is a victory for all Americans, whose jobs and economic security depend on the integrity of our capital markets."

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