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Skilling Gets 24 Years in Prison for Enron Fraud
Houston Chronicle ^ | Oct. 23, 2006, 3:56PM | Tom Fowler

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 ...


TOPICS: Breaking News; Business/Economy; Crime/Corruption; News/Current Events; US: Texas
KEYWORDS: enron; fastow; lay; prollygonnaoffhiself; skilling
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1 posted on 10/23/2006 2:15:09 PM PDT by Ready4Freddy
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To: Ready4Freddy

And a few more comments on a radio announcement thread here - http://www.freerepublic.com/focus/f-news/1724478/posts


2 posted on 10/23/2006 2:19:42 PM PDT by Ready4Freddy ("Everyone knows there's a difference between Muslims and terrorists. No one knows what it is, tho...)
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To: Ready4Freddy

"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.


3 posted on 10/23/2006 2:23:08 PM PDT by fabriclady
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To: Ready4Freddy

Let this be a lesson to anyone who wants to cook the books and get away with it to run for Congress.


4 posted on 10/23/2006 2:27:22 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Ready4Freddy

Jeff Skilling

COUNT CHARGE MAXIMUM
SENTENCE (YEARS)
VERDICT
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

5 posted on 10/23/2006 2:27:36 PM PDT by Ready4Freddy ("Everyone knows there's a difference between Muslims and terrorists. No one knows what it is, tho...)
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To: fabriclady
I'm not sure that they had a choice - weren't they precluded from selling their Enron shares, which the company used as the match?

I wonder why any investor would put all their eggs in one basket.

6 posted on 10/23/2006 2:29:28 PM PDT by Ready4Freddy ("Everyone knows there's a difference between Muslims and terrorists. No one knows what it is, tho...)
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To: Ready4Freddy

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.


7 posted on 10/23/2006 2:43:15 PM PDT by Jacquerie (Democrats soil institutions.)
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To: Jacquerie
Many employees were precluded from selling their Enron stock received via 401(k) match, period.

There was a narrow ten day or two week window in which they could not sell.

8 posted on 10/23/2006 2:50:09 PM PDT by Ready4Freddy ("Everyone knows there's a difference between Muslims and terrorists. No one knows what it is, tho...)
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To: Ready4Freddy

Well, at least he's rich.


9 posted on 10/23/2006 2:58:21 PM PDT by Axhandle
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To: Axhandle

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.


10 posted on 10/23/2006 3:11:37 PM PDT by laconic
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To: fabriclady
If only he'd commited treason and helped out AlQaida terrorists he'd be out in just over two years.

Maybe Skilling will finally figure out what crimes to commit and which ones to leave alone.

11 posted on 10/23/2006 3:15:49 PM PDT by muawiyah
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To: muawiyah

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.


12 posted on 10/23/2006 3:26:09 PM PDT by go-dubya-04
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To: Ready4Freddy
Many employees were precluded from selling their Enron stock received via 401(k) match, period.

Dream on.

13 posted on 10/23/2006 3:30:10 PM PDT by Jacquerie (Democrats soil institutions.)
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To: fabriclady

It's "Butner, NC"


14 posted on 10/23/2006 3:42:25 PM PDT by Rte66
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To: go-dubya-04
Or maybe if he raped a little girl/boy. Then he would get about 4 years, max.

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.

15 posted on 10/23/2006 4:18:45 PM PDT by ladyjane
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To: Ready4Freddy

Why "not guilty" on the insider trading counts? Too hard to prove?


16 posted on 10/23/2006 4:32:12 PM PDT by Rockitz (This isn't rocket science- Follow the money and you'll find the truth.)
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To: Rockitz

these people like Skilling think they are above the lawand every day people are beneif them. I just love these kind of ass--holes


17 posted on 10/23/2006 5:06:16 PM PDT by mickey blue eyes
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To: ladyjane

Fastow's a smart boy. Criminal genius, will write a book and get richer and richer.


18 posted on 10/23/2006 5:28:10 PM PDT by gotribe (It's not a religion.)
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To: ladyjane
You are exactly right. Andy Fastow should be in jail for 25 years, not Skilling (as much as I dislike Skilling). Fastow was the CFO, for goodness sakes, if anyone was the most culpable, it was Fastow. Nothing ever came of Fastow claiming that certain banks were involved in the Enron downfall, either. Perhaps Fastow had some leverage and used that leverage in the "deal" with prosecutors. Andy conned everyone and even sold out his own wife, although in retrospect, they both got off easy.

Skilling is not the most "likeable" character of the ensemble and came across as an arrogant asshat, a perfect "villain" that was perfect for taking the fall. I'm sure Andy's got lots of $$$ waiting for him somewhere when he gets out of "treatment".

So much for justice. This whole Enron debacle has been unbelievable from beginning to end.
19 posted on 10/23/2006 7:25:58 PM PDT by khnyny (God Bless the Republic for which it stands)
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I guess bilking people is more of an offense than actively helping terrorists plot and plan attacks against us as did the 'lawyer' for the blind sheik who only got 22 months for treason. Way to go court systems,

Read more at sacredscoop.com ...

20 posted on 10/23/2006 7:40:57 PM PDT by CottShop (http://sacredscoop.com)
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