Feds Want Skilling to Pay Nearly $183M

[jpak]

http://www.lasvegassun.com/sunbin/stories/nat-gen/2006/aug/12/081205946.html

HOUSTON (AP) - Federal prosecutors want former Enron Corp. CEO Jeffrey Skilling to turn over nearly $183 million for helping perpetuate one of the biggest business frauds in U.S. history - his alleged share and that of his late co-defendant, company founder Kenneth Lay.

The government had originally split that amount between the two former corporate titans, who were convicted in May of charges including fraud and conspiracy at the close of a four-month trial.

In late June, prosecutors asked U.S. District Judge Sim Lake to issue a money judgment ordering Skilling to pay $139.3 million, and Lay $43.5 million in proceeds the government contends they pocketed by conspiring to present an optimistic picture of Enron's health when they knew it was an illusion propped up by cooked books.

However, Lay died July 5 of heart disease. His lawyers have since filed court papers noting their intention to ask Lake to wipe Lay's record clean because he hadn't yet appealed his conviction or been sentenced. That would thwart the government's bid for a money judgment against him, but his assets could remain targets in civil litigation.

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[leesa]

1. Why wouldn't Lay's share come from his estate? He was already convicted.

[3waygeek]

3. Maybe, maybe not

IIRC, when Lay died, it was mentioned here that since he kicked the bucket before his sentencing, he was effectively off the hook. Basically a criminal conviction isn't really official until a sentence has been imposed.

[truthisfreedom]

2. good. i hope they bleed him dry.

freakin' corporate criminal.

[Sgent]

4. Its posturing

Skilling will have to be retried anyway -- his conviction will be overturned when Lays is (officially).

Under the court system, a convicted felon must be given full rights of appeal, or he loses his ability to have due process. Lay died before this happened.

Since Lay & Schilling were convicted as co-defendents, and Lay won't be around for an appeal, Schillings conviction should be voided as well, and he will have to be retried.

The Lay/Schilling defense attorney's tried to get separate trials from the start, and the US Attorney opposed. This is one of disadvantages to holding a joint trial (from the US Attorney's perspective).