Deal would cut ex-Enron CEO's jail term

Former Enron chief executive Jeff Skilling, left, leaves

Former Enron chief executive Jeff Skilling, left, leaves the federal courthouse in October 2006 with his attorney Daniel Petrocelli, after Skillings was sentenced to 24 years and 4 months in federal prison. A new deal could shorten his term. Photo Credit: AP, 2006

advertisement | advertise on newsday

Convicted ex-Enron Corp. CEO Jeffrey Skilling's more than 24-year prison sentence for his role in the once mighty energy giant's collapse could be trimmed by as many as 10 years if a federal judge approves an agreement reached Wednesday between prosecutors and defense attorneys.

Under the agreement, Skilling's original sentence will be reduced to somewhere between 14 and 17.5 years.

The agreement still has to be approved by U.S. District Judge Sim Lake, who is set to hold a June 21 hearing in Houston to make the final decision on the length of Skilling's sentence.

Daniel Petrocelli, Skilling's attorney, says the agreement "brings certainty and finality to a long, painful process."

Justice Department spokesman Peter Carr said the agreement will allow victims of Enron's collapse to finally receive more than $40 million in restitution forfeited by Skilling. The ongoing status of the case has so far prevented the government from distributing Skilling's seized assets to victims, according to the agreement.

advertisement | advertise on newsday

Skilling's sentence already was set to be reduced.

Skilling, 59, was convicted in 2006 on 19 counts of conspiracy, securities fraud, insider trading and lying to auditors for his role in the downfall of Houston-based Enron. The company collapsed into bankruptcy in 2001 under the weight of years of illicit business deals and accounting tricks.

Skilling has been in prison since December 2006 and is serving his sentence in a low-security facility outside Denver.

An appeals court in 2009 upheld his convictions but vacated his more than 24-year prison term and ordered that he be resentenced. And the U.S. Supreme Court said in 2010 that one of his convictions was flawed.

Enron's collapse put more than 5,000 people out of work, wiped out more than $2 billion in employee pensions and rendered worthless $60 billion in Enron stock.

The latest LI business news in your inbox daily. Get the Biz Briefing newsletter!

Comments

Newsday.com now uses Facebook for our comment boards. Please read our guidelines and connect your Facebook account to comment.

You also may be interested in: