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Jorski
05-25-2006, 01:34 PM
HOUSTON (Reuters) - A jury found former Enron Corp. chief executives Ken Lay and Jeffrey Skilling guilty of lying about the company's financial troubles in a verdict on Thursday that could send them to jail for years.

The convictions in a business scandal that sent shockwaves to Wall Street and Washington were a major victory for U.S. prosecutors intent on sending a message that corporate America must clean up its act.

Lay, 64, was convicted of six counts of conspiracy and fraud and faces up to 45 years in prison.



Skilling was found guilty of 19 counts of conspiracy, fraud, insider trading and making false statements which, combined, carry a maximum sentence of 185 years. He was not convicted on nine criminal counts.

In a separate trial, U.S. District Judge Sim Lake found Lay guilty of all four bank fraud charges for illegally using money from $75 million in personal loans to buy stock.

Skilling looked down when the sentence was read, while Lay's wife, Linda, grabbed her husband's arm.

Enron, once the nation's seventh largest company, collapsed into what was then the biggest U.S. bankruptcy in December 2001 amid disclosures it had used off-the-books deals to hide debt and inflate profits.

The convictions of Lay and Skilling bring to 19 the number of Enron executives who pleaded guilty or have been found guilty of crimes for their part in the company's demise.



Reuters 2006. All Rights Reserved.

zberger
05-25-2006, 02:39 PM
They deserve it.

Scum of corporate america, hopefully it will send a message to the rest of the greedy jerks who try to get away with murder.

Jorski
05-25-2006, 02:44 PM
I agree that they deserve it...just don't think that it will change much. Just look at the nonsense negative amortization jumbo mortgages being written today, looks like the lenders learned nothing from the S&L crisis in the late eighties.

Ric
05-25-2006, 03:48 PM
hey I'm no accountant nor am I an attorney, but...

What these guys have done to all of us is frustrating. I know of 4 or 5 things off the top of my mind that we now have to do differently "due to the enron case". Obviously you cannot trust anybody.

looks to me like those guys would have not only NOT gotten caught, but they'd have been financial heroes, and no little guys would have taken a beating either, had the bottom not fell out of the market after 9/11 ?????

M-Funf
05-25-2006, 03:59 PM
I know of 4 or 5 things off the top of my mind that we now have to do differently "due to the enron case".

Is that because of the tax law changes? We've got the same issue. We missed closing on a great deal because the company that was going to buy it said the tax law issues were too risky. There's $20MM in the crapper :rant: