Big Al
10-23-2006, 04:22 PM
Courtesy of the <A HREF=http://www.chicagotribune.com/news/custom/newsroom/chi-061022skilling-sentence,1,512012.story?coll=chi-news-hed>Chicago Tribune</A>
By Greg Burns
Tribune senior correspondent
Published October 23, 2006, 4:29 PM CDT
HOUSTON -- A federal judge today sentenced former Enron Corp. Chief Executive Officer Jeffrey Skilling to 24 years and 4 months in prison for the fraud that led to Enron's 2001 collapse.
In May, a jury convicted the 52-year-old Skilling on 19 counts of fraud, conspiracy and insider trading in connection with his actions at Enron. After it imploded within a matter of months, the once-highflying and apparently prosperous Houston energy-trading company was found to have used a variety of accounting tricks to overstate its earnings, while hiding massive amounts of debt and financial losses in off-balance-sheet accounts.
Despite his claims of innocence, Skilling was found to have played a central role in the company's deceptions. Under federal sentencing guidelines, Skilling had been facing a range of between 24 and 30 years in prison.
Before U.S. District Court Judge Sim Lake sentenced Skilling, he listened to a number of victims testify about the damage they suffered as a result of Enron's deceptions and ultimate collapse.
The victims testified that Skilling repeatedly lied to investors, including Enron employees who were encouraged to sink their life savings into what was presented to them as a fast-growing company with a bright future.
Charles Prestwood, an Enron retiree who worked for the company for 33 years, told the judge that he had lost his entire $1.3 million in savings when Enron failed. He told the court all he has left from Enron is two clocks he received from the company as gifts for being a long-time employee.
"I had $1.3 million, but all I have to show for it is two clocks," he said.
The judge had a stern demeanor as he sentenced Skilling, but refrained from any kind of tongue-lashing.
The sentence, he said, "was a tough decision." By his crimes, the judge continued, Skilling "imposed on hundreds, if not thousands of people, a life sentence of poverty."
Skilling will not be allowed to stay out of prison while he pursues an appeal of his conviction, the judge ruled.
Instead, he must turn himself in shortly to serve his sentence at a medium-security facility. Skilling has asked to serve his time at a federal prison in Butner, N.C. Until the Bureau of Prisons decides where he will serve, Skilling will wear an ankle bracelet and must remain at home.
Skilling had maintained to the judge that he was innocent of the charges he was convicted of, but he did say he felt deep remorse about the failure of Enron.
Right before the judge imposed his sentence, Skilling's attorney sought to argue that the defendant hadn't intended to hurt anyone by his actions, but Lake cut him off, saying that the trial evidence had made it clear that "he intended to commit a number of fraudulent activities."
After the sentencing, retiree Prestwood said "if it was up to me, he would have gotten a whole lot more [jail time] than that."
By Greg Burns
Tribune senior correspondent
Published October 23, 2006, 4:29 PM CDT
HOUSTON -- A federal judge today sentenced former Enron Corp. Chief Executive Officer Jeffrey Skilling to 24 years and 4 months in prison for the fraud that led to Enron's 2001 collapse.
In May, a jury convicted the 52-year-old Skilling on 19 counts of fraud, conspiracy and insider trading in connection with his actions at Enron. After it imploded within a matter of months, the once-highflying and apparently prosperous Houston energy-trading company was found to have used a variety of accounting tricks to overstate its earnings, while hiding massive amounts of debt and financial losses in off-balance-sheet accounts.
Despite his claims of innocence, Skilling was found to have played a central role in the company's deceptions. Under federal sentencing guidelines, Skilling had been facing a range of between 24 and 30 years in prison.
Before U.S. District Court Judge Sim Lake sentenced Skilling, he listened to a number of victims testify about the damage they suffered as a result of Enron's deceptions and ultimate collapse.
The victims testified that Skilling repeatedly lied to investors, including Enron employees who were encouraged to sink their life savings into what was presented to them as a fast-growing company with a bright future.
Charles Prestwood, an Enron retiree who worked for the company for 33 years, told the judge that he had lost his entire $1.3 million in savings when Enron failed. He told the court all he has left from Enron is two clocks he received from the company as gifts for being a long-time employee.
"I had $1.3 million, but all I have to show for it is two clocks," he said.
The judge had a stern demeanor as he sentenced Skilling, but refrained from any kind of tongue-lashing.
The sentence, he said, "was a tough decision." By his crimes, the judge continued, Skilling "imposed on hundreds, if not thousands of people, a life sentence of poverty."
Skilling will not be allowed to stay out of prison while he pursues an appeal of his conviction, the judge ruled.
Instead, he must turn himself in shortly to serve his sentence at a medium-security facility. Skilling has asked to serve his time at a federal prison in Butner, N.C. Until the Bureau of Prisons decides where he will serve, Skilling will wear an ankle bracelet and must remain at home.
Skilling had maintained to the judge that he was innocent of the charges he was convicted of, but he did say he felt deep remorse about the failure of Enron.
Right before the judge imposed his sentence, Skilling's attorney sought to argue that the defendant hadn't intended to hurt anyone by his actions, but Lake cut him off, saying that the trial evidence had made it clear that "he intended to commit a number of fraudulent activities."
After the sentencing, retiree Prestwood said "if it was up to me, he would have gotten a whole lot more [jail time] than that."