Protesting his innocence to the end, former Enron boss Jeff Skilling got hit with a nearly 25-year prison sentence yesterday for his crimes in the $68 billion collapse of the energy giant.
Skilling, his eyes lowered and his hands clasped in front of him in a packed Houston courtroom, showed no emotion as U.S. District Judge Sim Lake handed down one of the harshest sentences ever imposed for white-collar crime.
“His crimes have imposed on hundreds if not thousands a life sentence of poverty,” Lake said. In addition, for an hour before the sentencing, the judge permitted seven Enron victims to trash the 52-year-old Skilling openly in court, calling him a “a thief, drunk and liar” who ruined thousands of lives and allegedly wiped out up to $30 billion of investor and employee wealth.
“I had $1.3 million, and all I have to show for it is two clocks for service awards,” said former employee Charles Prestwood.
The judge did give Skilling a couple of breaks, including allowing him to remain free on $5 million bond with an ankle surveillance bracelet until he reports to a lockup at an undetermined prison.
The judge also drastically slashed the amount Skilling must pay in restitution to victims who lost everything.
Prosecutors wanted Skilling to pay $183 million in restitution to investors, but Judge Lake reduced it to $45 million, then added another $18 million in fines payable to Uncle Sam.
Under federal law, Skilling would get two months shaved from his sentence for each year of good behavior, making a total of 20 years and four months behind bars. There’s no federal parole, and he would walk out at 72 virtually penniless.
Skilling’s only assets remaining include a $5 million mansion in Houston, a $350,000 condo in Dallas, a Mercedes Benz, two Land Rovers and nearly $50 million in stocks and bonds. The feds have frozen it all.
Skilling also ows his lawyer Dan Petrocelli and his team about $30 million beyond the $23 million already earmarked by the court from assets for Skilling’s legal tab.
Skilling is the last remaining executive in the Enron debacle to be punished. His co-defendant, late co-founder Ken Lay, 64 was to have been sentenced yesterday, but died in July after their May trial and his criminal record was wiped clean because he couldn’t appeal his case.
The U.S. Justice Department yesterday sued Lay’s estate, demanding forfeiture of more than $12 million that the government calls the proceeds of fraud.
Skilling plans to appeal his sentencing and conviction, and insisted yesterday in his sentencing hearing that he was innocent of all 19 charges of fraud and conspiracy.
“Your honor, I am innocent of these charges,” Skilling said. “I’m innocent of every one of these charges.
“We will continue to pursue my constitutional rights, and it’s no dishonor to this court and anyone else in this court. But I feel very strongly about this, and I want my friends, my family to know that.”
Last month, Andrew Fastow, 44, the former Enron chief financial officer accused of helping design the scams, got just six months in prison after he testified against Lay and Skilling to help the feds win their case.
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A CEO’s downfall
HIGHS
Biggest pay check $72.5M
Estimated cash, securities and real estate $57M
LOWS
Convicted
19 counts of fraud, conspiracy, insider trading and lying to auditors.
Sentenced
24 years and four months in prison
$45 million in restitution