Former Enron CEO Jeffrey Skilling Resentenced to 14 Years in Prison
Former Enron CEO Jeffrey Skilling has received a new prison sentence.
Skilling has been resentenced to 14 years in prison on conspiracy, securities fraud, and other charges related to the collapse of Enron Corporation.
The 59-year-old Skilling was originally found guilty by a federal jury in May of 2006, of one count of conspiracy, 12 counts of securities fraud, one count of insider trading, and five counts of making false statements to auditors.
A judge originally sentenced Skilling to 24 years in federal prison in October 2006.
In January of 2009, the United States Court of Appeals for the Fifth Circuit affirmed Skilling’s convictions, but vacated his sentence and remanded for a new sentencing hearing.
The court of appeals concluded that the district court erred by increasing Skilling’s sentence for having substantially jeopardized the safety and soundness of Enron’s pension plan, according to the U.S. Attorney's Office.
The U.S. Supreme Court ruled in 2010 that one of Skilling’s convictions was flawed, as it curtailed the use of the “honest services” fraud law, and no evidence was presented that he accepted bribes or other kickbacks, according to the Associated Press.
In May of 2013, the government and skilling agreed to recommend a new sentence between 168 and 210 months of imprisonment in exchange for Skilling agreeing not to contest the original forfeiture and restitution order and to waive all other appeals and litigation.
Skilling has also been ordered to forfeit approximately $42 million toward restitution for the victims of the fraud at Enron.
The convictions stemmed from a scheme to deceive the investing public, the U.S. Securities and Exchange Commission, and others about the true performance of Enron’s businesses.
The scheme made it appear that Enron was growing at a healthy and predictable rate, which artificially inflated Enron’s stock price, which increased from around $30 per share in early 1998 to more than $80 per share in January 2001.
Enron filed for bankruptcy in December 2001, making its stock virtually worthless.