Skip to comments.Skilling Gets 24 Years in Prison for Enron Fraud
Posted on 10/23/2006 2:15:07 PM PDT by Ready4Freddy
Former Enron CEO Jeff Skilling was sentenced today to 24 years in prison for his role in the energy company's 2001 collapse in what become one of the nation's biggest corporate scandals.
U.S. District Judge Sim Lake ordered Skilling to home confinement with an ankle bracelet to monitor his movements. He told the U.S. Bureau of Prisons to recommend when Skilling should report to prison and suggested he be sent to the federal facility in Butler, N.C.
"This is not an easy decision,'' Lake said. "Sentencing is the most difficult and least pleasant part of my job Mr. Skilling has a family who loves him.''
He added, however, "His crimes have imposed on hundreds if not thousands, a life sentence of poverty."
Lake's sentence, more precisely 292 months, also ordered Skilling to participate in alcohol and mental health programs. He also approved the forfeiture of $45 million to be distributed to Enron employees.
That money will be distributed via the civil shareholder case going on before U.S. District Judge Melinda Harmon.
Defense attorney Daniel Petrocelli argued for a 10-month reduction, so that the 52-year-old Skilling could serve at a lower-security prison. Lake refused.
Skilling's sentencing marks vindication for some and a capstone to an era of corporate crime for others.
Victims of the company's downfall hope it will provide a satisfying coda to their search for justice and retribution.
"I want him to see life without parole, for all the lies he told us and others," said Charles Prestwood, a former Enron pipeline employee who lost his pension.
To others, the timing of Skilling's sentencing, after most of the other large corporate scandals such as WorldCom and Adelphia have played out, brings a tidy end to an era...
(Excerpt) Read more at chron.com ...
And a few more comments on a radio announcement thread here - http://www.freerepublic.com/focus/f-news/1724478/posts
"federal facility in Butler, N.C."
I'm surprised he is coming to Butler. Butler is located in one of the most beautiful part of our state, and very cold in the winter months. This will be no picnic. He will have a lot of time to think about his crime. Maybe he will write a book and give the proceeds to the people that lost their life savings.
I feel for them, however, I wonder why any investor would put all their eggs in one basket. This will be a lesson for a long time to come.
Let this be a lesson to anyone who wants to cook the books and get away with it to run for Congress.
|1||Conspiracy to commit securities and wire fraud||5||GUILTY|
|2||Securities fraud (Raptor transactions)||10||GUILTY|
|14||Securities fraud (Financial statements, 1999 10K, March 30, 2000)||10||GUILTY|
|16||Securities fraud (Financial statements, 2nd quarter 2000 10Q, Aug. 14, 2000||10||GUILTY|
|17||Securities fraud (Financial statements, 3rd quarter 2000 10Q, Nov. 14, 2000)||10||GUILTY|
|18||Securities fraud (Financial statements, 2000 10K, April 2, 2001)||10||GUILTY|
|19||Securities fraud (Financial statements, 1st quarter 2001 10Q, May 15, 2001)||10||GUILTY|
|20||Securities fraud (Financial statements, 2nd quarter 2001 10Q, Aug. 14, 2001)||10||GUILTY|
|22||Securities fraud (Analyst call Jan. 22, 2001)||10||GUILTY|
|23||Securities fraud (Analyst conference in Houston Jan. 25, 2001)||10||GUILTY|
|24||Securities fraud (Analyst call March 23, 2001)||10||GUILTY|
|25||Securities fraud (Analyst call April 17, 2001)||10||GUILTY|
|26||Securities fraud (Analyst call July 12, 2001)||10||GUILTY|
|31||False statements to auditors in annual representation letter (1999 10K; March 13, 2000)||10||GUILTY|
|32||False statements to auditors in annual representation letter (2000 10K; Feb. 23, 2001)||10||GUILTY|
|34||False statements to auditors in quarterly representation letter (2000 2nd quarter 10Q; August 11, 2000)||10||GUILTY|
|35||False statements to auditors in quarterly representation letter (2000 3rd quarter 10Q; Nov. 13, 2000)||10||GUILTY|
|36||False statements to auditors in quarterly representation letter (2001 first quarter 10Q; May 15, 2001)||10||GUILTY|
|42||Insider trading ($739,000 on April 25, 2000)||10||NOT GUILTY|
|43||Insider trading ($6.34 million on April 26, 2000)||10||NOT GUILTY|
|44||Insider trading ($1.29 million* on Aug. 30, 2000)||10||NOT GUILTY|
|45||Insider trading ($5.22 million* on Sept. 1, 2000)||10||NOT GUILTY|
|46||Insider trading ($972,000* on Sept. 5, 2000)||10||NOT GUILTY|
|47||Insider trading ($6.04 million* on Nov. 1, 2000)||10||NOT GUILTY|
|48||Insider trading ($1.65 million* on Nov. 2, 2000)||10||NOT GUILTY|
|49||Insider trading ($3.80 million* on Nov. 7, 2000)||10||NOT GUILTY|
|50||Insider trading ($20.99 million* on Nov. 15, 2000)||10||NOT GUILTY|
|51||Insider trading ($15.59 million*B115 on Sept. 17, 2001)||10||GUILTY|
I wonder why any investor would put all their eggs in one basket.
There was a narrow ten day or two week window in which they could not sell. The 401(k) custodian was being changed. If I remember correctly, by that time the stock had lost over 75% of its peak value. A lot of people had never had such wealth (at the high), got greedy, and held on way too long as the stock took over a year to slide to worthless.
There was a narrow ten day or two week window in which they could not sell.
Well, at least he's rich.
Yes, you're right, he's rich. Skilling will not need the 12 cents an hour he'll get for peeling potatoes, scrubbing toilets and swabbing the concrete floors. But then again, it will be the first honest work he's done since he joined Enron.
Maybe Skilling will finally figure out what crimes to commit and which ones to leave alone.
Bingo! Or maybe if he raped a little girl/boy. Then he would get about 4 years, max.
Listen, I think what these guys did was dispicable but the people who "lost everything" did so because they were greedy. They hopped on the gravy train and rode it for all it was worth. I have very little sympathy for people who are foolish enough to put their entire life savings into one stock and then bitch when it goes bust. They still would have taken a big hit even if they were diversified but it would be recoverable.
It's "Butner, NC"
Or maybe if he was the mastermind of the entire Enron financial deal he would be out in two years!
Andy Fastow was the mastermind behind all the sham companies and money transfers. He admitted that Lay and Skilling were not even aware of most of those schemes. However...
He got to the DA first, got his case transferred out of the grand jury, got a deal where he got to see all the evidence against him beforehand, and he'll probably be be out in about two years.
And by the way, he won't even be going to prison. He gets to go to a clinic to treat his 'addiction' to depression medication.
But it will make people feel better if *somebody* gets 26 years, even if it isn't the guy who made it happen.
Why "not guilty" on the insider trading counts? Too hard to prove?
these people like Skilling think they are above the lawand every day people are beneif them. I just love these kind of ass--holes
Fastow's a smart boy. Criminal genius, will write a book and get richer and richer.
Read more at sacredscoop.com ...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.