It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Former Enron CEO Skilling in deal to cut prison term

page: 1
4

log in

join
share:

posted on May, 8 2013 @ 06:52 PM
link   


Jeffrey Skilling, the former Enron Corp chief executive, could be freed from prison nearly a decade sooner than originally expected, under an agreement with federal prosecutors to end the last major legal battle over one of the biggest corporate frauds in U.S. history.

The agreement calls for Skilling to see his federal prison sentence reduced to as little as 14 years, down from the 24 years imposed in 2006. It could result in Skilling's freedom in late 2018, with good behavior.

www.reuters.com...

I really don't know how I feel about this partially because my brain suffered an aneurysm that they were even considering reducing the sentence. One of the biggest issues with corporate and securities fraud is that it is seldom considered prosecutable. It has to be really obvious that the intention was to mislead to even get a securities fraud case taken to court. Enron was one of those few cases. I have had to, as an accountant, do a full analysis of Enron's final financial statements and I can fully attest that what they did with those statements were intensely misleading and ridiculous. Skillings was found guilty of 19 counts of securities fraud in this setting where intention must be provable. At the time of the initial sentencing, some actually regarded the sentence as being too lenient:

money.cnn.com...

And what Enron was doing didn't even stop at fudging financial statements. They also plotted the rolling blackouts in California: www.cnn.com...
Audio tape: www.cbsnews.com...

This was Skillings' baby and they want to shave off 10 years of his sentence...Not good. This guy was more corrupt than Madoff, who received an 150 year sentence. Seriously. I'm flabbergasted.




posted on May, 8 2013 @ 07:47 PM
link   
I think anything over 10 years in prison is more than enough to make something "think over their actions."

Although, I'd rather see the previous Tyco CEO get his freedom before Skilling. Enron as you mentioned, with the rolling blackouts, was far more nefarious than someone like Dennis Kozlowski.

Dennis was a greedy prick, but even the stuff he went away on was not that bad compared to Enron or Maddof which was outright fraud. If memory serves correct, Tyco was still making money during all this.

usatoday30.usatoday.com...

Instead of going nuts on one or two execs as an "example" I'd rather see more of them get prosecuted. Simple as that...

Letting them out after 10-15 years to me is good as well, in which case, they will touch on their former social circles (even if rejection is the ultimate response) but seeing their former cohorts will make the people who are on top now, perhaps reconsider their actions, as they will be faced with people who were in the same spot but lost everything.
edit on 8-5-2013 by boncho because: (no reason given)



posted on May, 8 2013 @ 09:23 PM
link   
I recommend reading "The Smartest guys in the Room" or viewing the movie of the same name if you haven't already.

these guys were consumate conscienceless hucksters!



posted on May, 8 2013 @ 10:33 PM
link   
reply to post by boncho
 


Some of their cohort at Enron found themselves isolated by association. Others found jobs at places amenable to a former Enron accountant. I wish I was joking but from what I understand from the grapevine (being cautious here as this is an open investigation that I want no part of), a government contractor in my area hired on a former Enron accountant and is now in the midst of an investigation for improper accounting by the state department of justice. Of course, the friend along the grapevine said that the questionable accounting stuff was occurring before this Enron accountant was hired and thereby, there was no taint to being former "Enron". It was probably viewed as a bonus.

I think that the disparity between the sentencing of Madoff and Skillings is pretty bad. Both were glorified con artists really but Skillings' activities were far more widespread than Madoff's. The disparity almost seems to me that Madoff got the insane sentence of 150 years because of who he hurt and Skillings just hurt well, everybody else that wasn't as important. Part of Skillings' sentence reduction is through payment of $40 million from Skillings that is supposed to go to the Enron Victim's trust. Pretty sad when one can buy a reduction in sentencing. Normally, I'd agree with you about his sentencing being a little excessive. However, Skillings was an excessive, amoral kind of guy and there was definitely the number of victims to consider.

reply to post by Aloysius the Gaul
 


Believe it or not, The Smartest Guys in the Room movie was required viewing by a few accounting professors as well as my business law professor. It was the "don't freaking do this" lesson.



posted on May, 8 2013 @ 11:02 PM
link   
Skilling, and those convicted along with him, including that entire wave of 2000-2005 corporate gangsters, should really be condemned to prison camps with 7 days a week hard labor for life with no possibility of parole.

Actually, maybe, Guantanamo Bay. Yeah, that sounds better. They subverted the capitalist system. They are enemies. They are terrorists against the American way of life. They are traitors. Life in a labor camp for them.



posted on May, 8 2013 @ 11:11 PM
link   
reply to post by WhiteAlice


Pretty sad when one can buy a reduction in sentencing. Normally, I'd agree with you about his sentencing being a little excessive. However, Skillings was an excessive, amoral kind of guy and there was definitely the number of victims to consider.


 


I don't see Skilling as excessive per say (black & white) I think more so he should be returned to planet Earth with a ton of restrictions and a parole officer breathing down his neck. Mind you, I think a great number of financial fraud guys should be in the same boat, however, those people are too close to the one's calling the shots so it will never happen. It's like a Mother prosecuting her only child, the Police "policing" themselves, etc, etc.

We will never see financial criminals get chased down and prosecuted like you see the common criminal on COPS. And I don't mean the 'same' as in the same types of take-downs, I just mean the same numbers of people taken down, and sentences handed out.

So what they wring the neck of a few super rich fraudsters with no political connections to make it look like they are actively tackling the issue. I want them to actually tackle the issue...


And let 'em out after ten years, let 'em out and have the one's who haven't been caught yet see what's in store. That is exactly what they do with poverty line people. They arrest a bunch of kids from a 'hood', sometimes on trumped up charges, get them into a parole/probation system, and keep tabs on all of them. Meanwhile "setting an example" among the other hoodlums.

Do it in the financial world too, it'd be fun!



posted on May, 8 2013 @ 11:13 PM
link   
Fun Fact: Jeff Skilling's brother is legendary Chicago meteorologist Tom Skilling of WGN TV & WGN Radio. With WGN being a "superstation" for decades giving it a national audience you've probably seen Tom giving the forecast countless times without making the connection. Ironically while Jeff's predicted numbers never seemed to be accurate, Tom is the most trusted and accurate forecaster of all things weather here in Chicago.



posted on May, 8 2013 @ 11:19 PM
link   
This man's actions severely hurt many, many people's lives. Enron's fall hurt people in other companies also as the financial institutions cut credit to certain parts of energy companies.

Cutting him a deal is a joke. I bet he has a lot of money stashed away to carry on a very nice life outside prison.



posted on May, 8 2013 @ 11:21 PM
link   

Originally posted by WhiteAlice


reply to post by Aloysius the Gaul
 


Believe it or not, The Smartest Guys in the Room movie was required viewing by a few accounting professors as well as my business law professor. It was the "don't freaking do this" lesson.



I encountered it as part of an Australian Graduate Diploma in Risk Management (ie ISO31000) a few years ago - Enron was pretty much the whole topic of the 5 day "What is Risk Management" module, with the homework being an essay on how they "used risk management" (which was not in a good way!)!!



new topics

top topics



 
4

log in

join