Enron bosses to die in jail

[destruction]

Enron bosses to die in jail

Nick Papps, Los Angeles

27may06

TWO former Enron Corp executives have been sentenced to spend the rest of their lives in jail over one of the biggest corporate collapses and cover-ups in American history.

Enron founder Ken Lay and former chief executive Jeffrey Skilling were found guilty yesterday of conspiracy, lying, bank fraud and insider training after overseeing the demise of America's seventh-biggest company.

Lay, 64, faces 45 years after being convicted of six counts of conspiracy and fraud. Skilling, 52, faces 185 years after being found guilty of 19 counts of fraud, insider trading and making false statements.

Lay slumped, sighed and shook his head as the verdict was read. Outside court he said: "Certainly this is not the outcome we expected." Skilling said: "I think we fought a good fight but some things work and some things don't. Obviously I am disappointed but that is the way the system works."

Both men have been freed on $6.5 million bonds ahead of sentencing on September 11, and plan to appeal.

Enron collapsed in December 2001 under crippling debts in one of the the biggest bankruptcies in US history. The collapse wiped out more than $78 billion in Enron's market value, $2.7 billion in employees' pension plans was lost and 5600 employees lost their jobs.

Prosecutors alleged Lay and Skilling covered up the company's woeful financial position and propped up its share price by overseeing fictional reports of booming profits. It is estimated Lay pocketed $289 million and Skilling $197 million by selling shares at prices inflated by false financial statements.

Minutes after the verdict was read, Lay, the son of a preacher, stood in the Houston courtroom with his sobbing family members gathered around him. "God's got another plan right now," the disgraced businessman told his family.

Outside the court he said: "We believe that God in fact is in control and indeed he does work all things for good for those who love the Lord."

Ex-employee Sherri Saunders, who lost $1.3million in retirement savings, said "to me, God has spoken to him with this verdict".

The verdict was reached after six days of deliberation, with one juror saying the key was the testimony of ex-Enron treasurer Ben Glisan, serving a five-year sentence for conspiracy.

http://www.heraldsun.news.com.au/common/story_page/0,5478,19263307%255E664,00.html