Trial of Kenneth Lay and Jeffrey Skilling

Trial of Kenneth Lay and Jeffrey Skilling

The trial of Kenneth Lay, former chairman and CEO of Enron, and Jeffrey Skilling, former CEO and COO, was presided over by federal district court Judge Sim Lake in 2006 in response to the Enron scandal. The only fact Skilling admitted was that global crime based on industrial abuse and pressure is a global problem. [] "Oh yes, yes sure, it is", he answered when questioned.


* The trial began January 30, 2006.
* Opening arguments
** The defense argued there was much "wickedness", and pressure led to confessions by company leaders, and failure of "market confidence" led to the financial crisis: "13 of the 16 Enron executives who have pleaded guilty to federal crimes were innocent but caved in to intense pressure from federal prosecutors".Fact|date=February 2007
** Prosecution argues that leaders lied to Wall Street and investors about "crumbling finances".
* Eight former Enron executives testified, the star witness being Andrew Fastow, against Lay and Skilling, their former employers. cite news |title=Lay and Skilling's day of reckoning: Enron ex-CEO and founder convicted on fraud and conspiracy charges; sentencing slated for September. | date=25 May, 2006 || url=]
* The jury reached its verdict on May 25, 2006, convicting both Lay and Skilling. Lay was also convicted by Sim Lake of charges in a separate bench trial.
* Lay died on July 5, 2006, and his convictions were thrown out on October 17, 2006.
* Sentencing of Skilling took place on October 23, 2006.


(see [ U.S. DOJ list] )

In order of appearance:

* Ken Rice
* Wesley Colwell - Former Enron North America chief accountant cite news
last =
first =
coauthors =
title = Prosecution witness: Enron dipped into reserves to drive up earnings
work =
pages =
language =
publisher = Houston Business Journal
date = 27 February, 2006
url =
accessdate =
** "illegally" moved money out of company reserves to cover internal estimates
* Wanda Curry - chief accounting officer of Enron North America prior to Wesley Colwell
** displaced by Colwell, "not capable of making aggressive accounting decisions"
** U.S. District Judge Sim Lake did not allow prosecutors to get into details about the transaction -- year-end 1999 electricity trading deal with Merrill Lynch — that prompted J. Clifford Baxter (Enron's single suicide) to displace Curry for Colwell
* Timothy Belden
** West Coast energy trading profits
* David Delainey cite web
last =
first =
authorlink =
coauthors =
title = SEC Charges Former Chief Executive Officer of Enron North America and Enron Energy Services with Violating Federal Securities Laws
work =
publisher =
date = 30 October 2003
url =
format =
doi =
accessdate =

] - ex-CEO of Enron's trading unit, Enron North America
** Skilling coached for big meeting with analysts on Jan. 25, 2001
** Raptor accounts
** Enron Energy Services (EES), February 2001, chaotic, disarray, gushing
** lost receivables moved from EES to Enron North America trading division
** folding EES losses into Enron Wholesale Services
** EES never profitable
* Kevin Hannon


* Defense
**Michael Ramsey
**Bruce Collins
**Chip Lewis
**George McCall 'Mac' Secrest
**Mark Holscher
**Daniel Petrocelli
**Randy Oppenheimer
**Ron Woods

* Prosecution
**Sean Berkowitz
**Kathryn Ruemmler
**John Hueston
**Cliff Stricklin


The jury rendered its verdict on May 25, 2006. Sentencing took place on October 23, 2006.
* Skilling was convicted of 19 of 28 counts of securities fraud and wire fraud and acquitted on the remaining nine, including charges of insider trading. He was sentenced to 24 years, 4 months in prison, and cannot be released before serving less than 20 years, 4 months. In addition, he must pay $630 million to the government, which includes a $180 million fine.cite news
last = Lozano
first = Juan
coauthors =
title = Skilling Sentenced to 24 Years in Prison
work =
pages =
language =
publisher = AP via CBS News
date = 23 October, 2006
url =
accessdate =
* Lay was convicted of all six counts of securities and wire fraud for which he had been tried, and could have faced a total sentence of up to 45 years in prison; however, he died of a heart attack on July 5, 2006, prior to sentencing. Accordingly, the judge vacated Lay's conviction on October 17, 2006, since he died before he was sentenced.cite news
last = Nichols
first = Bruce
coauthors =
title = Convictions of dead Enron chief Ken Lay thrown out
work =
pages =
language =
publisher = Reuters
date = October 17, 2006
url =
accessdate = 2006-10-24
* Sixteen people pleaded guilty for crimes committed at the company, and five others, including four former Merrill Lynch employees, were found guilty at trial.

In a separate bench trial, Judge Sim Lake ruled that Lay was guilty of four counts of fraud and false statements. These counts were also vacated because of Lay's death.cite news |title=Lay and Skilling's day of reckoning: Enron ex-CEO and founder convicted on fraud and conspiracy charges; sentencing slated for September.
date=25 May, 2006 || url=


External links

* [ Enron: Trial Watch] - comments by observing lawyers
** chronological bottom to top
**archived dates in right-hand navigation of page
* [ Enron Trial Exhibits and Releases]
* [ Skilling indictment]
* [ Lessons from the Enron Verdict?] , JURIST

Wikimedia Foundation. 2010.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Kenneth Lay — Ken Lay redirects here. For the Chief Commissioner of Victoria Police, see Ken Lay (police officer). Kenneth Lay Born Kenneth Lee Lay April 15, 1942(1942 04 15) Tyrone, Missouri, U.S …   Wikipedia

  • Jeffrey Skilling — Infobox Criminal subject name = Jeffrey K. Skilling image size = image caption = date of birth = November 25, 1953 place of birth = Pittsburgh, Pennsylvania, U.S. date of death = place of death = charge = conspiracy, securities fraud, false… …   Wikipedia

  • Timeline of the Enron scandal — Timeline of the Enron scandal:1985Kenneth Lay seizes control of Omaha based Internorth. Internorth was a much larger, diversified energy company in Omaha, NE which had bought Lay s company, Houston Natural Gas. Through questionable means, Lay was …   Wikipedia

  • Idiot defense — The idiot defense is a satirical term for a legal strategy where a defendant claims innocence by virtue of having been ignorant of facts of which the defendant would normally be expected to be aware. Other terms used for this tactic include dumb… …   Wikipedia

  • Sean M. Berkowitz — (born 1967) is the former director of the Enron Task Force. He was tasked with prosecuting former employees of Enron who were thought to have engaged in white collar crime, principally accounting fraud. He was lead prosecutor in the joint trial… …   Wikipedia

  • October 2006 — was a month that began on a Sunday. The month was marked by a nuclear test by North Korea that prompted that passing of Resolution 1718 by the United Nations Security Council. Also at the United Nations, Ban Ki moon was elected to succeed Kofi… …   Wikipedia

  • Irell & Manella — Infobox Law Firm firm name = Irell Manella firm headquarters = foundation = 1941 | num offices = Century City, CA Newport Beach, CA num attorneys = 220 practice areas = General practice revenue = NA date founded = 1941 (California) company type …   Wikipedia

  • February 2006 — NOTOC February 2006 : ← January February March April May June July August September October November December →{| class= infobox width= 250 style= font size: 133%; background color: #DDDDDD; padding top: 5px; padding bottom: 5px !Trials | *Chile …   Wikipedia

  • March 2006 — Current events portal March 2006 is the third month of that year. It began on a Wednesday and 31 days later, ended on a Friday. < …   Wikipedia

  • April 2006 — NOTOC April 2006 : ← January February March April May June July August September October November December →{| class= infobox width= 250 style= font size: 133%; background color: #DDDDDD; padding top: 5px; padding bottom: 5px !Trials | *Chile:… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”