Enron chiefs face rest of their lives in prison
Both of the former Enron bosses Kenneth Lay and Jeffrey Skilling were found guilty of fraud yesterday in one of the most infamous cases in corporate history.
Sentencing was set for September 11. Technically, Lay had been open to 165 years in prison and Skilling 275 years. But they are likely to be given jail terms of between 20 and 30 years. The two men are free on $5m bail until the sentencing date.
The Enron bosses had been accused of a vast conspiracy to give the impression that the Houston-based energy company was in better financial shape than it actually was. The accounting tricks finally unravelled in late 2001. Investors fled in panic and the company was forced to file for bankruptcy.
The breakthrough for prosecutors came in early 2004 when they secured a guilty plea from the former Enron finance chief Andrew Fastow, who testified against his former bosses in return for a relatively short jail term of 10 years. He provided testimony during the trial that suggested both Lay and Skilling had encouraged him to commit fraud and lied to investors about the financial health of Enron. Both Lay and Skilling resolutely maintained their innocence and said Fastow was solely to blame.
Why does their conviction seem like a reflection of Bush's time in office and an indication that the lights are starting to go out on this administration?
Maybe it's because it fits in with DeLay and Libby - and possibly Rove - and the overall feeling that these right wingers who presumed they were above the law are finally being brought to heel.Click title for full article.
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Verdict on an Era: Arrogance and Recklessness at Enron
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