Enron’s Skilling Gets 24 Years

Former Enron Chief Executive Officer Jeffrey Skilling was sentenced on Monday to 24 years and four months in prison. Under federal rules, he has to do 85% of that time; lax parole is a state law idea. This means that the 52-year-old criminal won’t get out until he’s at least 73 years old. With the government taking most of his assets as well, he’ll get to live out his retirement dirt poor, just as he left so many others.

Mr. Skilling maintains his innocence, but then, according to inmates, there are no guilty men in jail. “I’m not happy about it but I believe deep down -- and this is not an act -- I believe I am innocent,” he stated for the press. He claims that the company was sunk due to a little skimming by executives in side deals followed by a collapse of market confidence. Delusional is one word for it.

CNN quoted Jacob Zamansky, a lawyer and expert on securities law, before the sentencing, “He’s the one that set policies and, according to the evidence, he masterminded the fraud. He’s in a much different position from someone levels below [who was] just following orders.” While it is not appropriate to follow illegal orders, giving such orders is far worse. And the CFO and CEO positions are those where orders are given, policy is set, and they are the men and women who are paid huge sums to protect the company.

Compared to other Enron criminals, Mr. Skilling’s sentence is stiff. Former CFO Andrew Fastow got only 6 years. Richard Causey, the company’s former accounting chief, has plea bargained and will be sentenced next month, facing a maximum of 7 years. So, Mr. Skilling is hopeful that his lawyers can cut the sentence he’s received on appeal. Then again, he could drop dead like Kenneth Lay did during the appeal process. In such cases, all charges are dropped. That too would be justice.

Before the compassionate crowd starts whinging, one must remember that Mr. Skilling conspired to defraud thousands of people out of billions of dollars. Many who were taken in by his lies about Enron’s financial health will live out their old age hoping the Social Security check stretches to the end of the month. Rather than having adequate health coverage as they grow old, they will have to make due with Medicare, paid for by the rest of the citizenry. His greed and deceit undermined the lives and well-being of thousands and the nation will have to pick up the bill. The appellate court ought to uphold the sentence passed.

© Copyright 2006 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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