USA: Former Enron CEO Jeffrey Skilling gets 24 year sentence, still claims innocence

Former Enron Corp. chief executive Jeff Skilling was sentenced on Monday (October 23) to more than 24 years in prison for his part in the financial scandal that brought down the company and came to symbolize a dark era in U.S. business. U.S. District Judge Sim Lake said Skilling would remain free with an electronic monitor on his ankle until he is ordered to report to prison. Skilling, who has said he would appeal his conviction on 19 criminal counts, also was ordered to pay 45 million US dollars in restitution to Enron investors. "I am obviously not happy about it," said Skilling when he was outside the courthouse. "I have three children, like anybody else I would like to spend time with my children. I believe, deep down, and this is no act or anything, I believe I am innocent. I believe in the long run when we review this in a somewhat calmer atmosphere that what has excited for the last five years, people will really look at that and I think it will work out fine." In May, Skilling and Enron founder Ken Lay were found guilty of defrauding investors by using off-the-books deals to hide debt and inflate profits. Enron, once the country's seventh largest company, collapsed into bankruptcy in December 2001 when the deals were disclosed. The resulting scandal rocked Wall Street and prompted reforms in the way companies report their finances. Lay, 64, died of a heart attack in July while vacationing in Colorado. Following legal precedent, Judge Lake threw out the Lay convictions on Oct. 17 because Lay died before a final judgement had been entered and before he could appeal. He and Lay testified that the crisis of confidence that undid Enron was caused by the actions of a few rogue employees, primarily former chief financial officer Andrew Fastow. Fastow confessed to skimming millions of dollars from the off-the-books deals he set up at Skilling's direction. He pleaded guilty, co-operated with prosecutors and received a six-year prison sentence. Enron's collapse cost investors billions of dollars and caused thousands of employees to lose their jobs and retirement savings. Skilling joins other prominent executives whose corner-office careers ended in prison cells. WorldCom founder Bernard Ebbers received a 25-year sentence, former Tyco chairman Dennis Kozlowski got 8 to 25 years, and John and Timothy Rigas of Adelphia received 15 and 20 year sentences, respectively. FINANCIAL SCANDALS

ITN Source | October 24, 2006

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