Enron Jurors Reach Verdict in Lay, Skilling Trial
May 25 (Bloomberg)
Jurors have reached a verdict in the criminal case against former Enron Corp. executives Kenneth Lay and Jeffrey Skilling, a court clerk said today.
The eight-woman, four-man jury will announce its decision on fraud and conspiracy charges against Lay, Enron's former chairman, and Skilling, its former chief executive officer, at 11 a.m. Houston time, court clerk Heather Carr said. Jurors deliberated six days before reaching their decision.
``This is a verdict that people across the nation have been anticipating for years,'' said David Irwin, a former state and federal prosecutor who now handles white-collar criminal defense cases in Baltimore.
Lay, 64, and Skilling, 52, face at least 25 years each in prison if convicted on all the charges against them. Prosecutors contend they oversaw a scheme to use off-the-books partnerships to manipulate Enron's finances. Skilling faces additional jail time if he's convicted of using insider information to make millions selling Enron stock.
Lay could also face added years in prison if Lake finds him guilty of separate charges that he defrauded and lied to bankers about borrowing money to buy stock. While the jury was deliberating, U.S. District Court Judge Sim Lake tried Lay on those charges and said he expects to announce his decision after jurors return their verdict in the main fraud and conspiracy case.
Enron, the world's largest energy trading firm, had more than $68 billion in market value before its December 2001 bankruptcy filing wiped out thousands of jobs and at least $1 billion in retirement funds virtually overnight. Investors suing over the company's claim rampant accounting fraud at the Houston- based firm caused at least $25 billion in losses.
The Testimony
Ex-Enron officials, including former Chief Financial Officer Andrew Fastow, told jurors Skilling helped orchestrate a scheme to use off-the-book partnerships to hide billions in losses and debts racked up by what was once the U.S.'s seventh-largest corporation by sales. Other executives said Lay took over the effort to deceive investors about Enron's financial health after Skilling stepped down as CEO in mid-2001.
Lawyers for the two men sought to counter those arguments by telling jurors that prosecutors sought to criminalize normal business practices and that the executives were victims of thieving subordinates like Fastow.
