Skilling Sentenced To 24 Years In Prison

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

25 October 2006

Former Enron CEO Jeffrey Skilling was this week sentenced to 24 years in prison for his role in the fraudulent financial mismanagement which eventually led to the firm's collapse, and ordered to pay $45 million in restitution to affected Enron shareholders, many of them former employees of the energy trading firm.

US District Judge, Sim Lake announced, according to media reports, that:

"Mr. Skilling and his attorneys argue that the guideline range would be tantamount to life in prison. But as the many victims of his crime have so poignantly explained, his crimes have imposed on them a life sentence of poverty."

Professing the arguably mutually exclusive conditions of remorse and innocence, Mr Skilling reportedly stated after the sentencing that:

"I'm obviously disappointed with the sentence. I don't blame the judge. I'll appeal it, and I think we'll win."

Last week, Judge Lake vacated the criminal charges against former Enron Boss - and Skilling's co-defendant - Kenneth Lay, as he died before he could appeal them.

Filing the request in August, Lay's legal team had argued that:

"Despite what may have been proven at trial, the trial is deemed not to have taken place. Thus, at least in the eyes of the criminal court, the defendant is no longer a wrongdoer and has not defrauded or damaged anyone."

The US authorities opposed this interpretation, which would prevent them from pursuing the Lay estate for the more than $43 million that he allegedly stole from Enron.

However, Judge Lake chose to uphold a 2004 precedent on the treatment of criminal convictions in the event of the individual in question's death before an appeal has been lodged.

The US Justice Department last week expressed its determination to pursue the matter further.

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