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Thursday, May 25, 2006
(Via NYTimes) . The most followed court case in recent times has come to an end this stage -Enron Chiefs Found Guilty of Fraud and Conspiracy. Kenneth L. Lay and Jeffrey K. Skilling, the chief executives who guided Enron through its spectacular rise and even more stunning fall, were found guilty of fraud and conspiracy today in a case that led the parade of corporate scandals in recent years that emerged from the get-rich-quick stock market excesses of the 1990's.The eight women and four men on the jury reached the verdicts after more than six days of deliberations. Mr. Skilling was convicted of 18 counts of fraud and conspiracy and one count of insider trading. He was acquitted on nine counts of insider trading. Mr. Lay was found guilty on six counts of fraud and conspiracy. He was also convicted of four counts of bank fraud in a separate case.The conspiracy and fraud convictions each carry a sentence of 5 to 10 years in prison. The insider trading charge against Mr. Skilling carries a maximum of 10 years. Sentencing is set for the week of Sept. 11. For a company that once seemed so complex that almost no one could understand its arcane accounting or how it actually made its money, the cases ended up being nearly as simple as could be. Mr. Lay and Mr. Skilling were found guilty of lying to investors, to employees and to government regulators in an effort to disguise the crumbling fortunes of their energy empire."C.E.O.'s can't hide behind accountants, behind lawyers," said John Hueston, a prosecutor in the case, "especially when they make tens of millions of dollars."The sentence that each has to serve could well be 20 years or more, ratcheting up the probability that Lay, 64, and Skilling, 52, could spend the rest of their lives behind bars.
Category :Corporate Governance, Emerging Trends |
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