Enron CEO could have 24-year sentence slashed

Jeffrey Skilling to spend Christmas in prison, but appeals court has warned that the punishment could be cut significantly due to 'serious frailties' in his conviction

Written by David Jetuah

Accountancy Age, 14 Dec 2006

Convicted Enron CEO Jeffrey Skilling could have his sentence reduced after a Houston appeals court announced that it had identified flaws in his conviction during a review. The disclosure came after federal judges refused Skilling's plea to remain under house arrest at his mansion until his appeal was decided.

'Our review has disclosed serious frailties in Skilling's conviction of conspiracy, securities fraud and insider trading' the federal appeals court said. In light of the announcement Skilling's defence attorney Daniel Petrocelli championed a 'substantial reduction' of his client's sentence if these counts were thrown out on appeal.

Skilling received a 24-year punishment in October in the wake of the former energy giant's ex-CFO Andrew Fastow turning star witness for the prosecution.

He will now be spending Christmas at Waseca Federal Correctional Institution, a low security prison in Minnesota. At Waseca, where temperatures can drop to -17C in the winter, Skilling more accustomed to a multimillion-dollar salary will be expected to work five days a week for a maximum of 40 cents (20p) an hour.