Ex-Enron CEO Skilling has 10 years lopped off sentence


Jailed ex-CEO Jeffrey Skilling, a longtime executive at Exxon, at one time the world’s largest wholesaler of gas and electricity, in October 2006, was convicted of 19 counts of fraud, conspiracy, and insider trading relating to the collapse of the Texas-based energy services giant. His 20-year-old son, John Taylor Skilling, the youngest of his three […]

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

NEW YORK (CNNMoney) — A federal judge reduced the prison sentence of former Enron chief executive Jeffrey Skilling by 10 years on Friday, closing the book on one of the most spectacular white-collar cases of the last two decades.

Skilling was originally sentenced to 24 years, the longest sentence of any Enron perpetrator, and has been incarcerated in the federal prison system since his 2006 conviction. He had been facing a release date of Feb. 21, 2028.

As part of the resentencing deal brokered between prosecutors and the defense last month, Skilling agreed to stop challenging his conviction and forfeit roughly $42 million that will be distributed among the victims of the Enron fraud.

“The sentence handed down today ends years of litigation, imposes significant punishment upon the defendant and precludes him from ever challenging his conviction or sentence,” Acting Assistant Attorney General Mythili Raman said in a statement.

It’s unclear exactly when Skilling will be released under his new 14-year sentence. The Justice Department referred questions on the issue to the Bureau of Prisons, which declined to comment.

Victims, including former Enron employees and stockholders, were invited to speak at the resentencing hearing Friday. More than 4,000 employees lost their jobs and some also lost their life savings, which were tied up in the company investment retirement plans. Investors lost billions of dollars. The name “Enron” has become synonymous with white collar crime, just as the name “Madoff” has become synonymous with Ponzi schemes.

Skilling was convicted of fraud, conspiracy, insider trading and lying to auditors during his tenure as executive of Enron, an energy-trading company that went bankrupt in 2001 amid allegations of corporate fraud and corruption.

But Skilling has maintained his innocence throughout the duration of the scandal, just like his CEO predecessor Kenneth Lay, who founded Enron.

Lay was also convicted, in 2006, of corporate fraud. But he died later that year at age 64 while on vacation in Aspen, Colo., just months before his scheduled sentencing.

Skilling, 59, is being held at a federal jail in downtown Houston for the duration of the court proceedings. Also known as inmate #29296-179, he usually resides at Englewood federal prison in Littleton, Colo.

Another Enron convict, Andrew Fastow, was released four years early, in 2011, after making a plea bargain.

CNN’s Carol Cratty and CNNMoney’s James O’Toole contributed reporting.

FOX 2 Newsletters

Sign up for a newsletter from FOX 2 to get updates about news and weather. We offer daily headlines, breaking news, severe weather, and forecast emails.

About FOX 2 News

FOX 2 and KPLR 11 in St. Louis cover the news in Missouri and Illinois. There are over 68 hours of live news and local programming on-air each week. Our website and live video streams operate 24/7. Download our apps for alerts and follow us on social media for updates in your feed.

President Harry Truman said: “It is amazing what you can accomplish if you do not care who gets the credit.” That spirit is alive and well at Fox 2. Our teamwork is on display each and every day.

Our news slogan is: “Coverage You Can Count On.” We quite frankly are too busy to worry about who gets the credit. Our main concern is serving the viewer.

We go where the stories take us. Whether it be Washington, D.C when a Belleville man opened fire during a congressional baseball game practice or to Puerto Rico where local Ameren crews restored power after more than 5 months in the dark.

Coverage You Can Count On means “Waking up your Day” with our top-rated morning show. From 4:00 am-10:00 am we are leading the way with breaking news. But our early morning crew also knows how to have some fun! Our strong commitment to the communities we serve is highlighted with our Friday neighborhood shows.

Our investigative unit consists of three reporters. Elliott Davis focuses on government waste, Chris Hayes is our investigative reporter, and Mike Colombo is our consumer reporter. They work in unison with the news department by sharing resources and ideas.

We continue to cover breaking news aggressively and relied on our seasoned journalists to make a difference with the stories we covered. The shooting of Arnold Police Officer Ryan O’Connor is just one example of that. Jasmine Huda was the only reporter who had exclusive access to the O’Connor family during his amazing rehabilitation in Colorado.

Last, but certainly not least, FOX 2 and KPLR 11 are committed to covering local politics. We host debates among candidates and have the most extensive presidential election coverage. Our commitment to politics isn’t just during an election year. We produce two political shows that air every weekend.


Latest News

More News