Enron Trial: Ex-CEO and founder found guilty for fraud 1544

  • Sharing this development as an FYI, as the Enron case was a major contributing factor leading to the development of SOX compliancy regulations (along with a few other companies)
    Enron Trial: Ex-CEO and founder found guilty for fraud
    Enron former chief executive Jeffrey Skilling and founder Kenneth Lay were found guilty Thursday of conspiracy and fraud in the granddaddy of all corporate fraud cases.
    On the sixth day of deliberations, a jury of eight women and four men convicted the former executives of misleading the public about the true financial health of Enron, whose collapse in late 2001 symbolized the wave of corporate fraud that swept the United States early this decade.

    Skilling was found guilty on 19 counts of conspiracy, fraud, false statements and insider trading. He was found not guilty on eight counts of insider trading.
    Lay was found guilty on all six counts of conspiracy and fraud. In a separate bench trial, Judge Sim Lake ruled Lay was guilty of four counts of fraud and false statements. Both Lay and Skilling could face 20 to 30 years in prison, legal experts say.

  • The smartest guys in the room won’t be feeling too smart today :lol:
    An excellent verdict.

  • Denis, there’s still the appeal process and this case could be tied up for years. If it were me, doing the sentencing I’d make these guys do what we have to do while they’re serving time (e.g., test sampling, filling out control documents, looking at the CRT for hours on end) 😉 🙂

  • Disagree…the convicted felons must be punished commensurate with the crimes committed…they should be forced to listen to Taylor Hicks greatest hits from American Idol and serve a mandatory sentence of 20 yrs. with no opportunity for early release. Of course, this would require 24 hr observation for risk of suicide during confinement.

  • Maybe both of these ideas could be combined … It wouldn’t hurt for these guys to fill out SOX forms and go thru the same misery they brought up on us 😉

  • I agree with Milan and Harry…
    Maybe there could be a federal chain gang for convicted SOx felons.
    The prison system could lease these prisoners to companies to do menial tasks…or, they could just cut the grass out in the hot sun of corporate headquarters to remind everyone indoors at HQ what happens to those who break the law.
    Just a thought.

  • Maybe there could be a federal chain gang for convicted SOx felons.

    Well I guess that they could join the one that Bernie Ebers started down in Mississippi :lol:

  • In many respects, this is a sad ending to this part of the Enron case, as the wrongful accounting practices of Enron and other companies led to SOX regulations …
    Enron’s founder and former CEO Ken Lay Dies of heart attack

  • So he escapes justice in the end.

  • After embezzling that much money it would be possible to find a substitute for the casket and stage a death. I like to think he’s in Barbados or Cayman Islands escaping justice…

  • In other news, Fastow was sentenced yesterday…6 years in prison.

  • As Jason noted, below are some related links:
    Please paste into your browser (no www is needed)

  • The prison name generator for Andy Fastow comes up with ‘towel boy’…quite befitting since Fastow will do his 6 yrs. at the ‘Club Fed’ aka, Federal Prison for high profile persons convicted of non-violent crimes.
    He’ll probably be busy while serving time providing towel service to his fellow inmates when he’s not occupied writing his autobio.
    Sorta ironic that Andy Dufresne, from Shawshank Redemption, and Fastow shared the same first name and profession before conviction.

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