Ken Lay Verdict: Guilty On All Charges

Posted on May 25, 2006

A federal jury in Houston, Texas has convicted Ken Lay and Jeffrey Skilling of fraud and conspiracy charges for their role in the collapse of Enron.

"The government will not let corporate leaders violate their trust and get away with it," said Sean Berkowitz, head of the Justice Department's Enron Task Force, which conducted the prosecution. "You can't lie to shareholders and put yourself in front of your employees' interests."
Lay, 64, and Skilling, 52, face at least 25 years each in prison after being convicted of using off-the-books partnerships to disguise Enron's debts. Skilling faces additional jail time over his conviction for using inside information to sell Enron stock. Lay was also convicted on bank fraud charges after a trial that U.S. District Judge Sim Lake held without a jury while the panel in the main case deliberated.
"Obviously I'm not real happy with this," Skilling said in the courtroom after the verdict. "It is what it is." Skilling maintained his innocence and his lawyer, Daniel Petrocelli, said he would appeal. Lake said he would sentence the defendants on Sept. 11. Skilling is allowed to remain free on $5 million bond and doesn't have to be put in "home confinement" as prosecutors sought, Lake said.
Lay surrendered his passport after the judge said he wasn't allowed to leave the courthouse until he did so. Lay posted a $5 million bond, co-signed by his wife and children. He's restricted to living in Colorado and the southern district of Texas, and the routes to and from those places. "I firmly believe I'm innocent of the charges against me," Lay said outside the courtroom. "We believe God in fact is in control and he does indeed work all things for the good." Both men face spending the rest of their lives in prison if they are given maximum sentences. After the verdict was announced, the color drained from Lay's face and his wife and daughter burst into tears. Skilling's wife wasn't in the courtroom. "We've had a trial, and obviously it did not come out the way we hoped," Petrocelli said. "It doesn't change our view of what happened at Enron. And it certainly doesn't change our view of Jeff Skilling's innocence."

Lay and Skilling are looking at possible 25 year prison sentences. The Houston jury apparently didn't buy their innocent pleas. Houston is so abuzz about the Enron trial that The Houston Chronicle put out a special edition of the paper. They have a special online section as well. After all, Enron was one of Houston's biggest employers; there are a lot of unhappy people there who lost their pensions.