Sun, Jun 23, 2013 - Page 13 News List

Court cuts 10 years from former Enron CEO’s jail sentence

AP, HOUSTON, Texas

Ex-Enron Corp CEO Jeffrey Skilling — seen by many as exemplifying the worst in corporate fraud and greed in the US — could be released from prison in about four years’ time after a US federal judge on Friday shaved off a decade from his original sentence of more than 24 years.

Skilling’s resentencing during a packed courtroom hearing brought one of the US’ most notorious financial scandals — the collapse of the once-mighty energy giant — to a conclusion that upset some former Enron workers.

Ex-Enron worker Diana Peters, the only victim who spoke at the resentencing hearing, said afterward in a telephone interview that Skilling should have to serve his entire original sentence.

‘NO REMORSE’

“Jeffrey Skilling has never taken any responsibility for his actions,” said the 63-year-old Peters, who lives in Huntsville, north of Houston. “He has no remorse for the end result of what happened.”

The US Justice Department said in order to resolve a case that has gone on for more than 10 years, it agreed to an additional reduction of about 20 months as part of a deal to stop Skilling from filing any more appeals. Federal prosecutors say it will allow for US$41.8 million of Skilling’s assets to be distributed as restitution to victims of Enron’s 2001 collapse.

Skilling, 59, who has been in prison since 2006, declined to make a statement during Friday’s hearing.

During the hearing, prosecutor Patrick Stokes criticized Skilling for continuing “to cast himself as a victim” and said Skilling “is anything but a victim.”

“Mr Skilling was not only at the pinnacle of Enron, he was at the pinnacle of the fraud schemes,” Stokes said.

RESTITUTION

Once the money from Skilling’s assets is added, about US$560 million in restitution will have been collected for victims of the Enron scandal, Stokes said.

Even with the reduced sentence, Skilling’s prison term is still the longest of those involved in the Enron scandal. He was the highest-ranking executive to be punished. Enron founder Kenneth Lay’s similar convictions were vacated after he died of heart disease less than two months after his trial.

Skilling was convicted in 2006 on 19 counts of conspiracy, securities fraud, insider trading and lying to auditors for his role in the downfall of Houston-based Enron. The company, once the seventh-largest in the US, went bankrupt under the weight of years of illicit business deals and accounting tricks.

Enron’s collapse put more than 5,000 people out of work, wiped out more than US$2 billion in employee pensions and rendered worthless US$60 billion in Enron stock.

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