Jeffrey Skilling, the former CEO of controversial American energy giant Enron, has successfully petitioned for a ten-year reduction to his prison sentence. The former chief executive was one of several executives responsible for the collapse of Enron, which was previously one of the United States’ largest energy companies.
Skilling was originally sentenced to 24 years for his role in the collapse. His sentence was reduced after the former executive agreed to forfeit $40 million in assets seized by the United States government and end his appeal. The shortened sentence could see the financial fraudster released before the end of the decade.
Enron was formerly one of the United States’ largest and fastest-growing energy companies, boasting thousands of full-time employees and dominance of Texas’s large energy sector. The company used mark-to-market accounting to mislead its investors and report large profits while losing money during the late 1990s.
The company’s collapse is regarded as one of the biggest corporate failures in US history, with Skilling and former CEO Kenneth Lay both sentenced for their role in the scandal. Lay died of a heart attack while in police custody. Skilling was found guilty of 19 charges in 2006, and sentences to 24 years for his involvement.
Enron’s collapse was a devastating blow to employees and former investors, with over $62 billion in stock and pension funds wiped out as the company collapsed in 2001. The $40 million seized from Mr Skilling will be used to reimburse investors and former Enron employees, prosecutors claim.
Skilling’s shorter sentence means that he may be released this decade, largely due to the misapplication of sentencing guidelines during his original trial. For the victims of one of the world’s largest corporate frauds, it’s a frustrating change to what was seen as a major public victory in prosecuting Enron’s top executives.
