Victory Over Enron Scandal for the Bush D.O.J. - XDTalk Forums - Your HS2000/SA-XD Information Source!

NewXD40fun · 05-25-2006, 02:21 PM

Lay, Skilling guilty in Enron verdict

Thomas S. Mulligan
LA Times Staff Writer

May 25, 2006, 2:55 PM EDT

HOUSTON -- Former Enron executives Kenneth L. Lay and Jeffrey K. Skilling were found guilty today on most counts in their landmark conspiracy and fraud case.

In the end, the jury of eight women and four men embraced the testimony of a parade of former Enron executives who said Lay and Skilling lied publicly about the energy company's financial health and condoned, if not actively encouraged, the use of accounting tricks to boost reported profits and hide debt.

The verdicts, which were reached after the jury deliberated for more than five days, were read aloud in a Houston courtroom.

Lay, 64, the company's former chairman, was found guilty on all six counts of fraud and conspiracy. Former chief executive Skilling, 52, was found guilty of fraud and conspiracy in addition to one count of insider trading, 19 counts in all; he was acquitted of the nine remaining insider trading charges.

Sentencing was scheduled for Sept. 11. Lay faces a maximum of 165 years in prison while Skilling faces a maximum of 185 years, according to Associated Press.

Outside the courtroom, Skilling denied any wrongdoing, and his chief defense attorney, Daniel Petrocelli, vowed to file a "full and vigorous appeal."

"We fought a good fight," Skilling told reporters gathered outside the downtown courtroom. "Some things work. Some things don't."

One of the jurors interviewed after the trial said that the testimony of former Enron treasurer Ben Glisan Jr., who is serving a five-year prison sentence for his role in the scandal, played an important part as they weighed the evidence.

"We kept on going back to that testimony to corroborate things," said school principal Freddy Delgado. "I believe that he was one of the best witnesses that was brought forward."

The decision of Lay and Skilling to take the stand in their own defense didn't help their case much, according to another juror.

"I wanted very, very badly to believe what they were saying," said business owner Wendy Vaughn. But, "there were places in their testimony where I felt their character was questioned."

Lay's sale of $20 million of Enron stock in 2001 months before the company collapsed also weighed heavily with jurors, with one expressing disgust at the transaction, which would not have to be reported until the following year. It was "a disgrace," said electrical designer Doug Martin.

The verdicts were perhaps the government's most important victory in its high-profile war against corporate corruption.

"The jury has spoken, and they have sent an unmistakable message to boardrooms across the country: You can't lie to shareholders. You can't put yourselves in front of your employees' interest," said Sean M. Berkowitz, head of the Justice Department's Enron Task Force, outside the courtroom. "No matter how rich and powerful you are, you have to play by the rules."

Fellow Enron task force member and Orange County federal prosecutor John C. Hueston said that the verdicts will make it harder for top executives to blame their company's problems on their underlings to avoid legal responsibility.

"CEO's cannot hide behind accountants. They cannot hide behind lawyers. They cannot hide behind claims of ignorance when they have been paid tens of millions of dollars to be the faithful stewards of shareholders and investors," Hueston said.

Enron's implosion was one of the most infamous corporate scandals in U.S. history. The energy company's failure wiped out more than 5,000 jobs and billions of dollars of stock market value. It also led to sweeping new regulations and legislation — particularly the 2002 Sarbanes-Oxley law — meant to curb corporate wrongdoing and restore confidence in companies' financial statements.

Lay and Skilling, who have insisted that they were made scapegoats for Enron's shocking 2001 collapse, became the headline targets of a massive crackdown on corporate wrongdoing that also resulted in charges against executives of such companies as WorldCom, Adelphia Communications, HealthSouth and Tyco International.

Enron's auditors, then-Big Five accounting giant Arthur Andersen, went out of business after being indicted for obstruction of justice in the wake of Enron's collapse. Testimony showed that Andersen employees shredded mounds of Enron-related documents after the federal probe was launched. The U.S. Supreme Court last July overturned the firm's 2002 conviction due to faulty jury instructions.

Lay and Skilling attempted vainly to have their trial moved to a location less saturated by media coverage of Enron's crash, but there were few places in America where the news hadn't penetrated.

"Just the mention of the name Enron evokes images of duplicity and greed," Linda Chatman Thomsen, director of enforcement for the Securities and Exchange Commission, said at the time of Lay's July 2004 indictment.

An Oscar-nominated documentary film and a handful of mass-market books were spawned by the scandal. Feisty Enron whistle-blower Sherron S. Watkins, in addition to co-authoring a book, launched a lucrative second career lecturing on business ethics.

An investigation by the Enron Task Force, created by the Department of Justice shortly after the company's Dec. 2, 2001 bankruptcy filing, has resulted in charges against more than 20 people.

The Enron trial lasted 56 days, including one day for jury selection, one day for opening statements and three days for closing arguments. The prosecution team took 30 days to present its case. The defense took 21 days.

The government called 22 witnesses and the defense 31, including Lay and Skilling. Lay spent five days on the witness stand. Skilling testified for eight days.

Lay and Skilling argued that there was no crime at Enron, other than that committed secretly by former Chief Financial Officer Andrew S. Fastow.

http://www.newsday.com/business/ny-b...y-tennis-print

Good job Mr. President!!!

Tom

mgeoffriau · 05-25-2006, 02:28 PM

You know, when you think about the reactions to "big-business corruption" from the left, it's striking that the general complaint is not that these people got away with it for a while -- it's that they would do it at all.

In my opinion, that's the great advantage of the right: the recognition that people do bad things, and that catching people doing bad things is a good thing, not a bad thing. Instead acting all shocked that someone would *gasp* lie and cheat and steal, we should simply acknowledge that these things happen all the time, and be happy that when the story broke, the government did what it needed to bring justice to them.

one-eyed-fatman · 05-25-2006, 04:36 PM

Quote:

Bush did not directly respond to Enron, and there was no hint of the company's name in a glowing statement he issued early Wednesday afternoon on the state of the economy:

Mark S. · 05-25-2006, 04:55 PM

I wonder if GWB will be visiting his old buddy "Kenny Boy" Lay in jail.

Son of Norway · 05-25-2006, 04:58 PM

Quote:

Originally Posted by Mark S.

I wonder if GWB will be visiting his old buddy "Kenny Boy" Lay in jail.

Conjugal visit?

NewXD40fun · 05-25-2006, 05:02 PM

Quote:

Originally Posted by one-eyed-fatman

Quote:

Bush did not directly respond to Enron, and there was no hint of the company's name in a glowing statement he issued early Wednesday afternoon on the state of the economy:

Gee fatman I thought you would be happy that the Bush administration Department of Justice came down hard and fast on the Enron debacle. Maybe you should switch to another Leftist blog sewer for your opinions.

And why would the President even mention the bankrupt Enron corporation when he spoke of the latest glowing economic news?
Despite the Enron failure, the economy is still growing effusively.

Tom

NewXD40fun · 05-25-2006, 05:04 PM

Quote:

Originally Posted by Mark S.

I wonder if GWB will be visiting his old buddy "Kenny Boy" Lay in jail.

Wow Mark(sist)S....getting desperate for ammo are we?

Tom

manic mechanic · 05-25-2006, 05:39 PM

Hell, ya never know it might not be a visit, could be roomies.

one-eyed-fatman · 05-25-2006, 05:42 PM

Quote:

Maybe you should switch to another Leftist blog sewer for your opinions.

Is that what you think this forum is? I know you do. Surprise! There really is a gun forum here. Your the only one who don't know that.

bd1 · 05-25-2006, 06:07 PM

This was a great victory for Bush!

It's one of the few scandals in the last 6 years that someone he appointed or from his party was not implicated in ----YET!

Great job Mr. President!

bd

05-25-2006, 02:21 PM	#1
NewXD40fun XDTalk 2K Member Join Date: Jul 2005 Location: North Olmsted, Ohio Posts: 2,729	Victory Over Enron Scandal for the Bush D.O.J. Lay, Skilling guilty in Enron verdict Thomas S. Mulligan LA Times Staff Writer May 25, 2006, 2:55 PM EDT HOUSTON -- Former Enron executives Kenneth L. Lay and Jeffrey K. Skilling were found guilty today on most counts in their landmark conspiracy and fraud case. In the end, the jury of eight women and four men embraced the testimony of a parade of former Enron executives who said Lay and Skilling lied publicly about the energy company's financial health and condoned, if not actively encouraged, the use of accounting tricks to boost reported profits and hide debt. The verdicts, which were reached after the jury deliberated for more than five days, were read aloud in a Houston courtroom. Lay, 64, the company's former chairman, was found guilty on all six counts of fraud and conspiracy. Former chief executive Skilling, 52, was found guilty of fraud and conspiracy in addition to one count of insider trading, 19 counts in all; he was acquitted of the nine remaining insider trading charges. Sentencing was scheduled for Sept. 11. Lay faces a maximum of 165 years in prison while Skilling faces a maximum of 185 years, according to Associated Press. Outside the courtroom, Skilling denied any wrongdoing, and his chief defense attorney, Daniel Petrocelli, vowed to file a "full and vigorous appeal." "We fought a good fight," Skilling told reporters gathered outside the downtown courtroom. "Some things work. Some things don't." One of the jurors interviewed after the trial said that the testimony of former Enron treasurer Ben Glisan Jr., who is serving a five-year prison sentence for his role in the scandal, played an important part as they weighed the evidence. "We kept on going back to that testimony to corroborate things," said school principal Freddy Delgado. "I believe that he was one of the best witnesses that was brought forward." The decision of Lay and Skilling to take the stand in their own defense didn't help their case much, according to another juror. "I wanted very, very badly to believe what they were saying," said business owner Wendy Vaughn. But, "there were places in their testimony where I felt their character was questioned." Lay's sale of $20 million of Enron stock in 2001 months before the company collapsed also weighed heavily with jurors, with one expressing disgust at the transaction, which would not have to be reported until the following year. It was "a disgrace," said electrical designer Doug Martin. The verdicts were perhaps the government's most important victory in its high-profile war against corporate corruption. "The jury has spoken, and they have sent an unmistakable message to boardrooms across the country: You can't lie to shareholders. You can't put yourselves in front of your employees' interest," said Sean M. Berkowitz, head of the Justice Department's Enron Task Force, outside the courtroom. "No matter how rich and powerful you are, you have to play by the rules." Fellow Enron task force member and Orange County federal prosecutor John C. Hueston said that the verdicts will make it harder for top executives to blame their company's problems on their underlings to avoid legal responsibility. "CEO's cannot hide behind accountants. They cannot hide behind lawyers. They cannot hide behind claims of ignorance when they have been paid tens of millions of dollars to be the faithful stewards of shareholders and investors," Hueston said. Enron's implosion was one of the most infamous corporate scandals in U.S. history. The energy company's failure wiped out more than 5,000 jobs and billions of dollars of stock market value. It also led to sweeping new regulations and legislation — particularly the 2002 Sarbanes-Oxley law — meant to curb corporate wrongdoing and restore confidence in companies' financial statements. Lay and Skilling, who have insisted that they were made scapegoats for Enron's shocking 2001 collapse, became the headline targets of a massive crackdown on corporate wrongdoing that also resulted in charges against executives of such companies as WorldCom, Adelphia Communications, HealthSouth and Tyco International. Enron's auditors, then-Big Five accounting giant Arthur Andersen, went out of business after being indicted for obstruction of justice in the wake of Enron's collapse. Testimony showed that Andersen employees shredded mounds of Enron-related documents after the federal probe was launched. The U.S. Supreme Court last July overturned the firm's 2002 conviction due to faulty jury instructions. Lay and Skilling attempted vainly to have their trial moved to a location less saturated by media coverage of Enron's crash, but there were few places in America where the news hadn't penetrated. "Just the mention of the name Enron evokes images of duplicity and greed," Linda Chatman Thomsen, director of enforcement for the Securities and Exchange Commission, said at the time of Lay's July 2004 indictment. An Oscar-nominated documentary film and a handful of mass-market books were spawned by the scandal. Feisty Enron whistle-blower Sherron S. Watkins, in addition to co-authoring a book, launched a lucrative second career lecturing on business ethics. An investigation by the Enron Task Force, created by the Department of Justice shortly after the company's Dec. 2, 2001 bankruptcy filing, has resulted in charges against more than 20 people. The Enron trial lasted 56 days, including one day for jury selection, one day for opening statements and three days for closing arguments. The prosecution team took 30 days to present its case. The defense took 21 days. The government called 22 witnesses and the defense 31, including Lay and Skilling. Lay spent five days on the witness stand. Skilling testified for eight days. Lay and Skilling argued that there was no crime at Enron, other than that committed secretly by former Chief Financial Officer Andrew S. Fastow. http://www.newsday.com/business/ny-b...y-tennis-print Good job Mr. President!!! Tom __________________ Springfield XD-40 Service w/DGR kit, EFK 9mm Taurus PT-140 Mill Pro _ Specialized Roubaix Expert "YOU'VE GOT TO STAND FOR SOMETHING OR YOU'LL FALL FOR ANYTHING" ---Aaron Tippin

05-25-2006, 02:28 PM	#2
mgeoffriau XDTalk 1K Member Join Date: May 2005 Location: Jackson, MS Posts: 1,038	You know, when you think about the reactions to "big-business corruption" from the left, it's striking that the general complaint is not that these people got away with it for a while -- it's that they would do it at all. In my opinion, that's the great advantage of the right: the recognition that people do bad things, and that catching people doing bad things is a good thing, not a bad thing. Instead acting all shocked that someone would gasp lie and cheat and steal, we should simply acknowledge that these things happen all the time, and be happy that when the story broke, the government did what it needed to bring justice to them. __________________ I felt early on I wasn't going to be a respectable citizen. -- Cormac McCarthy We are hard pressed on every side, but not crushed; perplexed, but not in despair; persecuted, but not abandoned; struck down, but not destroyed.

05-25-2006, 05:39 PM	#8
manic mechanic XDTalk 1K Member Join Date: Jun 2005 Location: michigan, down the river Posts: 1,128	Hell, ya never know it might not be a visit, could be roomies. __________________ The 2nd amendment makes all the others possible. If we ever forget that we're One Nation Under God, then we will be a nation gone under." Ronald Reagan

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05-25-2006, 04:55 PM	#4
Mark S. XDTalk 500 Member Join Date: Oct 2003 Location: Fullerton, CA Posts: 733	I wonder if GWB will be visiting his old buddy "Kenny Boy" Lay in jail.

05-25-2006, 06:07 PM	#10
bd1 XDTalk 500 Member Join Date: Feb 2006 Location: Western NC Posts: 626	This was a great victory for Bush! It's one of the few scandals in the last 6 years that someone he appointed or from his party was not implicated in ----YET! Great job Mr. President! bd