Former Enron bosses face life terms
By Our Corporate Bureau | 26 May 2006
Enron's former bosses, Enron founder Kenneth Lay and Jeffrey Skilling face a life terms after having been found guilty of fraud and conspiracy by a Texas jury in one of the biggest corporate scandals in American history.
The jury reached a verdict finding Lay guilty of all six counts that he was charged with. On separate charges of bank fraud, the judge has convicted Lay to 165 year prison term, while Skilling, found guilty of 19 of the 28 charges of fraud, could face 185 years behind bars.
The jury also found Lay and Skilling guilty of having repeatedly lied to cover up accounting misreporting and failing ventures at Enron. The verdict was pronounced after a week of deliberations following the trial, which lasted nearly four months.
Lay and Skilling have been ordered to post a $5 million bond, while Lay will have to surrender his passport to the court pending sentencing in September 2006.
Lawyers for both Lay and Skilling said they would appeal the verdicts.
Once America's seventh largest company, Enron collapsed after accounting frauds were revealed. The company had hidden an estimated $40 billion of debts in secret accounts to protect its core balance sheet.
