Enron Verdict
You all might be knowing it by now. At 11am Houston time, the jury verdict in Enron trial came as a huge win for the prosecutors. It was kind of surprising that Jury came out with verdict in just five days.
Kenneth Lay was found guilty in all the six counts of conspiracy and fraud. He was also found guilty on the four separate counts of fraud and false statements to the bank. This trial as held separately and jury was not involved in it though the Judge was same. The Judge had decided to give verdict in this case only after the verdict of main trial.
Jeffrey Skilling, the Harvard MBA, ex McKinsey associate and former CEO of Enron was found guilty of 19 counts of conspiracy, fraud and false statements. However he was found 'not guilty' on nine counts of insider trading.
It is almost certain that both of them will appeal against this verdict. Right now their prospects seem to be possible incarceration for rest of their life.
Skilling appeared before the press with his attorney shortly after the verdict. He was visibly concerned but maintained his calm and composure. Joining his attorney he thanked everyone, in particular his family and children. He termed this as disappointment, maintained his innocence and said "some things work, some doesn't".
Update - I have to take it off my chest. I know the former employees of Enron are vindicated. They lost all their savings and their pension fund overnight. So are those millions of investors who had Enron shares with them.
But I still feel sad for Skilling. I don't know much about Lay, apart from the fact that he was a great philantropist and a major contributor to George Bush presidential campaign. But Skilling was the one who transformed the whole energy market and how business was been done. His brilliance was impressive and astounding. His ideas were most innovative and evoked respect for him. It will be real sad to see him languishing in a penitentiary. I feel as if I am writing an obituary of brilliance personfied. But no one is above the law of land. May his fate do him justice
posted by greensatya @ 11:09 PM
9 Comments:
At 11:28 PM,
Anonymous said…
The verdict was predictable, I would have been surprised if the outcome had been different.
At 11:36 PM,
greensatya said…
Towngirl - Yeah the verdict was predictable. Almost all of the corporate trials these days are turning to be win for the prosecutors.
At 11:52 PM,
Unknown said…
i daresay..too little too late?
At 12:06 AM,
greensatya said…
TFFI - Yeah it was late but not little. They have huge prison term if their appeal does not go through. I don't understand why people do these frauds ?
At 5:17 AM,
Unknown said…
Lay and Skilling got what they deserved, and they deserve to spend the rest of their lives in prison.
Yes, it's a huge punishment. But i feel that nothing can be enough to undo what they did. But it's atleast a step in the direction, and some redemption for the system IF they carry out their sentences to term.
and then i can't help wonder, what kind of fates have similar scandals met in India???
At 7:05 AM,
greensatya said…
TGFI - It's definitely a redemption for the system.
As for India , we had many comparable corporate frauds. The outcome is not difficult to guess. Many didn't even made it to trial.
At 3:56 AM,
Unknown said…
ah. i didn't realise you felt that way. obviously, you are coming from a different angle, one that i'm admittedly ignorant of. it is indeed sad when genius and brilliance choose such wrong paths to move up.
former employees of enron must be vindicated. i know of atleast one who was driven to bankrupcy and remained jobless for a long time after.
At 7:32 AM,
Sara said…
hmmm...the comments seem to be getting very interesting :)
its sad that someone so brilliant is being punished...but then thats the difference between brilliance and greatness...
At 9:56 AM,
greensatya said…
TGFI - I can only imagine the hardships of people who lost their job, lifelong savings, etc due to this fraud. They will get sort of closure with this trial.
Brilliance is like a weapon, can be put to good as well as bad use.
There is another aspect of today's corporate world where success is most often determined by the price of its stock in the bourses. Also success is intoxicating.
Sara - Yeah interesting discussion here. You have put it right. Though sad but it was deserved
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