Greedy ENRON Bastards, Lay and Skilling, Guilty

**Mr. Kotter** · 05-25-2006, 10:27 AM

http://money.cnn.com/2006/05/25/new...dex.htm?cnn=yes

Lay and Skilling Guilty
Ex-CEO and founder convicted on fraud and conspiracy charges in Enron case.

May 25, 2006: 11:46 AM EDT

HOUSTON (CNNMoney.com) - Enron former chief executive Jeffrey Skilling and founder Kenneth Lay were found guilty Thursday of conspiracy and fraud in the granddaddy of all corporate fraud cases. On the sixth day of deliberations, a jury of eight women and four men convicted the former executives of misleading the public about the true financial health of Enron, whose collapse in late 2001 symbolized the wave of corporate fraud that swept the United States early this decade.

Skilling was found guilty on 20 counts of conspiracy, fraud, false statements and insider trading. He was found not guilty on eight counts of insider trading.

Lay was found guilty on all six counts of conspiracy and fraud.
In a separate bench trial, Judge Sim Lake ruled Lay was guilty of four counts of fraud and false statements.

Both Lay and Skilling could face 20 to 30 years in prison, legal experts say.

The verdict is a major victory for the government and marks the end of one of the most scandalous chapters in the history of corporate America.

Houston-based Enron, once one of the hottest companies on Wall Street, imploded in a matter of months after Skilling abruptly resigned as CEO in August 2001. Lay, who was chairman at the time, postponed his retirement plans to return to the helm.

Enron's collapse marked the first of the high-profile corporate scandals that rocked the nation, followed by WorldCom, Global Crossing, Adelphia and Tyco. The wave of fraud led to passage of the Sarbanes-Oxley law that tightened oversight of how American companies are audited.

After a government investigation that took 4-1/2 years, prosecutors presented evidence that Lay and Skilling orchestrated a conspiracy to artificially inflate profits, hide millions in losses and misrepresent the true nature of the company's finances.

The long-awaited trial began Jan. 31 in Houston, despite repeated protests from defense attorneys calling for a change in venue.

The defense argued that it was impossible to get a fair trial in Houston - the epicenter of Enron's collapse. Enron's bankruptcy, the biggest in U.S. history when it was filed in December 2001, cost 4,000 employees their jobs and many of them their life savings. Investors lost billions.

Over 16 weeks, the government presented 22 witnesses, including former top executives, who testified that Skilling and Lay fostered a culture that put the company's image and stock price above everything else, at any cost.

Sixteen people pleaded guilty for crimes committed at the company, and five others, including four former Merrill Lynch employees, were found guilty at trial. Eight former Enron executives testified against Lay and Skilling, their former bosses.

But it was Enron's former finance chief, Andrew Fastow, who was the star witness for the government.

Fastow, who pleaded guilty to wire and securities fraud in 2004 in exchange for an expected 10-year sentence, testified that special partnerships were created to help the company hide millions of dollars in losses.

But defense lawyers dismissed the testimony of Fastow and other witnesses, saying that not only were Lay and Skilling innocent, but that no crimes were committed at Enron, except for the shady deals that enriched Fastow.

As for those other than Fastow who testified against Lay and Skilling, defense attorneys said they were strong-armed by the government and compelled to lie on the stand out of fear for themselves and their families.

In an attempt to explain away the company's aggressive accounting and the optimistic comments executives made to Wall Street, both Skilling and Lay testified during the trial.

But that yielded decidedly mixed results.

Skilling, known for his harsh attitude, came off in a mostly positive light, though he did lose his temper on the stand. But Lay's congenial reputation took a blow as he appeared confrontational and irritable at several points during his testimony.

Bootlegged · 05-25-2006, 10:41 AM

Quote:

Originally Posted by jAZ

I'm pretty sure these guys (Enron Execs) were involved in writing our current energy policy (and quite possibly or Iraq foreign policy). Though we won't know until the list is declassified. I'm sure that's not necessary, these folks are quite trustworthy.

HA.. Took all of one post for JiZ to sneak in here and make this a Bush bash. Off to DC..

**Mr. Kotter** · 05-25-2006, 10:43 AM

Quote:

Originally Posted by jAZ

I'm pretty sure these guys (Enron Execs) were involved in writing our current energy policy (and quite possibly or Iraq foreign policy). Though we won't know until the list is declassified. I'm sure that's not necessary, these folks are quite trustworthy.

First post. And you already want to make this about Bush.

**banyon** · 05-25-2006, 10:43 AM

Quote:

Originally Posted by Lattimer

HA.. Took all of one post for JiZ to sneak in here and make this a Bush bash. Off to DC..

Clearly, Ken Lay has nothing to do with Bush. I don't think they've ever even met.

**jAZ** · 05-25-2006, 10:44 AM

Quote:

Originally Posted by Lattimer

HA.. Took all of one post for JiZ to sneak in here and make this a Bush bash. Off to DC..

I didn't see that Kotter double posted this in the DC. I'll delete and move my post there. No need to move on my account.

**jAZ** · 05-25-2006, 10:46 AM

Quote:

Originally Posted by Mr. Kotter

First post. And you already want to make this about Bush.

Yeah, you double posted this in the DC because you know it's entirely unrelated to politics.

Let's see if I can do this smiley thing right...

**Mr. Kotter** · 05-25-2006, 10:48 AM

Quote:

Originally Posted by banyon

Clearly, Ken Lay has nothing to do with Bush. I don't think they've ever even met.

Yeah. He'd be the first and only President to have "ties" to shady business execs and corporations......

**Mr. Kotter** · 05-25-2006, 10:49 AM

Quote:

Originally Posted by jAZ

Yeah, you double posted this in the DC because you know it's entirely unrelated to politics.

Let's see if I can do this smiley thing right...

I knew assclowns like you would make it that.....I figured we might get a decent discussion over here, before the idiots took over. Guess I was wrong....

**jAZ** · 05-25-2006, 10:51 AM

Quote:

Originally Posted by Mr. Kotter

I knew assclowns like you would make it that.....I figured we might get a decent discussion over here, before the idiots took over. Guess I was wrong....

But, but, but!

**banyon** · 05-25-2006, 11:01 AM

Quote:

Originally Posted by Mr. Kotter

Yeah. He'd be the first and only President to have "ties" to shady business execs and corporations......

No disagreement there, but to act like jAZ's post was irrelevant is disingenuous IMO.

**BigMeatballDave** · 05-25-2006, 11:11 AM

Quote:

Originally Posted by banyon

Clearly, Ken Lay has nothing to do with Bush. I don't think they've ever even met.

Politician is synonymous with underhanded...

Hydrae · 05-25-2006, 11:54 AM

You know, putting them in jail for the rest of their natural life is all fine and dandy but I am sure there are a lot of people who would rather have a chance at some of those ill-gotten gains. There were so many people who lost everything and these guys may go to jail but the money will stay in their accounts.

Duck Dog · 05-25-2006, 12:24 PM

Quote:

Originally Posted by Hydrae

You know, putting them in jail for the rest of their natural life is all fine and dandy but I am sure there are a lot of people who would rather have a chance at some of those ill-gotten gains. There were so many people who lost everything and these guys may go to jail but the money will stay in their accounts.

What about civil suits?

**Mr. Kotter** · 05-25-2006, 12:28 PM

Quote:

Originally Posted by Duck Dog

What about civil suits?

Their estates will be ravaged. And should be.

Pitt Gorilla · 05-25-2006, 02:23 PM

Quote:

Originally Posted by Mr. Kotter

Yeah. He'd be the first and only President to have "ties" to shady business execs and corporations......

You do realize that YOU are the only person to say or imply "first and only." Was the rolleyes smilie directed at yourself?

05-25-2006, 10:27 AM
Mr. Kotter The Dude Abides Join Date: Apr 2001 Location: Dakota Country Casino cash: $5725285	Greedy ENRON Bastards, Lay and Skilling, Guilty http://money.cnn.com/2006/05/25/new...dex.htm?cnn=yes Lay and Skilling Guilty Ex-CEO and founder convicted on fraud and conspiracy charges in Enron case. May 25, 2006: 11:46 AM EDT HOUSTON (CNNMoney.com) - Enron former chief executive Jeffrey Skilling and founder Kenneth Lay were found guilty Thursday of conspiracy and fraud in the granddaddy of all corporate fraud cases. On the sixth day of deliberations, a jury of eight women and four men convicted the former executives of misleading the public about the true financial health of Enron, whose collapse in late 2001 symbolized the wave of corporate fraud that swept the United States early this decade. Skilling was found guilty on 20 counts of conspiracy, fraud, false statements and insider trading. He was found not guilty on eight counts of insider trading. Lay was found guilty on all six counts of conspiracy and fraud. In a separate bench trial, Judge Sim Lake ruled Lay was guilty of four counts of fraud and false statements. Both Lay and Skilling could face 20 to 30 years in prison, legal experts say. The verdict is a major victory for the government and marks the end of one of the most scandalous chapters in the history of corporate America. Houston-based Enron, once one of the hottest companies on Wall Street, imploded in a matter of months after Skilling abruptly resigned as CEO in August 2001. Lay, who was chairman at the time, postponed his retirement plans to return to the helm. Enron's collapse marked the first of the high-profile corporate scandals that rocked the nation, followed by WorldCom, Global Crossing, Adelphia and Tyco. The wave of fraud led to passage of the Sarbanes-Oxley law that tightened oversight of how American companies are audited. After a government investigation that took 4-1/2 years, prosecutors presented evidence that Lay and Skilling orchestrated a conspiracy to artificially inflate profits, hide millions in losses and misrepresent the true nature of the company's finances. The long-awaited trial began Jan. 31 in Houston, despite repeated protests from defense attorneys calling for a change in venue. The defense argued that it was impossible to get a fair trial in Houston - the epicenter of Enron's collapse. Enron's bankruptcy, the biggest in U.S. history when it was filed in December 2001, cost 4,000 employees their jobs and many of them their life savings. Investors lost billions. Over 16 weeks, the government presented 22 witnesses, including former top executives, who testified that Skilling and Lay fostered a culture that put the company's image and stock price above everything else, at any cost. Sixteen people pleaded guilty for crimes committed at the company, and five others, including four former Merrill Lynch employees, were found guilty at trial. Eight former Enron executives testified against Lay and Skilling, their former bosses. But it was Enron's former finance chief, Andrew Fastow, who was the star witness for the government. Fastow, who pleaded guilty to wire and securities fraud in 2004 in exchange for an expected 10-year sentence, testified that special partnerships were created to help the company hide millions of dollars in losses. But defense lawyers dismissed the testimony of Fastow and other witnesses, saying that not only were Lay and Skilling innocent, but that no crimes were committed at Enron, except for the shady deals that enriched Fastow. As for those other than Fastow who testified against Lay and Skilling, defense attorneys said they were strong-armed by the government and compelled to lie on the stand out of fear for themselves and their families. In an attempt to explain away the company's aggressive accounting and the optimistic comments executives made to Wall Street, both Skilling and Lay testified during the trial. But that yielded decidedly mixed results. Skilling, known for his harsh attitude, came off in a mostly positive light, though he did lose his temper on the stand. But Lay's congenial reputation took a blow as he appeared confrontational and irritable at several points during his testimony.
Posts: 46,352

05-25-2006, 11:54 AM	#12
Hydrae Sandbox: Leander Lasercats Join Date: Jul 2001 Location: Austin, Tx Casino cash: $2137000	You know, putting them in jail for the rest of their natural life is all fine and dandy but I am sure there are a lot of people who would rather have a chance at some of those ill-gotten gains. There were so many people who lost everything and these guys may go to jail but the money will stay in their accounts.
Posts: 14,693