Enron CEO, Jeff Skilling, Received Shorter Jail Sentence

Various news agencies reported last week that a federal judge reduced Jeff Skilling's prison sentence by about ten years. If Skilling is found to be on good behavior and take a drug and alcohol rehabilitation course, he could be out of prison within four years. Part of the agreement is for Skilling to quit trying to get his conviction overturned. This new ruling also frees up some money from Skilling's estate that will be used to compensate victims of the fraud, including former Enron employees who lost their retirement when the company went bankrupt. Diana Peters is one of many former Enron employees who was at the latest trial and is quoted as follows:

"I pray that your decision is to give Jeff Skilling the maximum sentence for his crimes." 

Fraud always ends in a sad story as innocent victims deal with the aftermath by experiencing serious devastation, suffering and heartache. My heart goes out to these former Enron employees who had nothing to do with the crazy games Skilling, Fastow, Lay and others were playing...

Former Enron CEO Working a Deal to Get out of Prison

Mainstream news sources are saying that Jeffrey Skilling, former Enron CEO, is working a deal to cut his prison sentence by more than a decade. The reports say that...

Skilling and the Supreme Court

The WSJ just reported that the U.S. Supreme Court has ruled that at least part of Skilling's conviction in the Enron fraud case needs a closer look. The article is quite short right now but the key quote is as follows:

The justices sent the cases back to two different lower courts to determine whether portions of Skilling and Black's convictions should be thrown out.

An AP news release explained further that:

Skilling and the Supreme Court

The LA Times has more information on the Skilling appeal to the Supreme Court. Based on this article, it appears that Skilling has a good chance of getting a reduced sentence because of a vague law called the "honest services" law. Whether he has a chance of being set free is unclear in my opinion. Here are a few key quotes:

The justices, both conservatives and liberals, agree on the principle that a criminal law must clearly state what is a crime. And the law that makes it a crime to "scheme . . . to deprive another of the intangible right of honest services" is anything but clear.

During Monday's argument, a lawyer for Skilling said that under the government's approach, it could be a crime for an employer to use an office computer for his personal use.

... It was the third time in recent months the justices have voiced doubt about the "honest services" law. However, even if part of Skilling's conviction were overturned, government lawyers say some of his conviction for securities fraud should stand.

Most crooked CEOs

Time Magazine online lists their top ten most crooked CEOs (Criminal Executive Officers). At the top of the list is Bernie Madoff. Also on the list are the CEOs of the major financial statement frauds of the past decade including Enron's Lay and Skilling (2nd), Tyco's Kozlowski (3rd), Adelphia's Rigas (4th) and WorldCom's Ebbers (10th).

Could Skilling be set free?

Today's WSJ reported that the U.S. Supreme Court has agreed to hear arguments that Jeffrey Skilling's trial for fraud at Enron was not fair since it took place in Houston. The juror selection process appears to have been weak. I guess we'll have to see if Skilling will be set free by the Supreme Court.