Supreme Court Rejects Jeffrey Skilling's Appeal In Enron Case

* Appeals court ruled that any errors at trial were harmless

* Supreme Court ruled in case in 2010

* Resentencing of Skilling is next legal step

By James Vicini

WASHINGTON, April 16 (Reuters) - The U.S. Supreme Court on Monday refused to hear the latest appeal by former Enron Corp Chief Executive Jeffrey Skilling seeking to overturn his criminal conviction over the collapse of the Houston-based energy trading giant more than a decade ago.

The justices without any comment declined to review a ruling by the U.S. 5th Circuit Court of Appeals that rejected Skilling's legal challenge to his conviction and that found that any error committed by the trial judge was "harmless."

The appeals court ruled a jury in the case had been presented with overwhelming evidence that Skilling conspired to commit securities fraud and it refused to grant him a new trial.

The jury in Houston convicted Skilling in 2006 on 19 counts, including conspiracy, securities fraud, making false statements to auditors and insider trading. Enron was the seventh-largest U.S. corporation before it collapsed and filed for bankruptcy in December 2001.

The Supreme Court ruled in 2010 in an earlier appeal, narrowing the reach of the so-called honest services fraud law, invalidating one theory used by prosecutors for Skilling's conspiracy conviction and ordering further appeals court review.

The appeals court then upheld Skilling's conviction. It ruled the verdict would have been the same even if the invalidated theory had not been used at trial.

In appealing to the Supreme Court, Skilling's main attorney, Daniel Petrocelli of Los Angeles, said the justices should grant the appeal and either summarily reverse the appeals court or set the case for full consideration.

U.S. Justice Department Solicitor General Donald Verrilli opposed the appeal. He said the appeals court correctly decided that an erroneous jury instruction on an alternative theory of guilt was harmless beyond a reasonable doubt because evidence of guilt on the legally correct theory was so overwhelming.

Skilling has been serving a sentence of more than 24 years in a federal prison. The appeals court in its ruling a year ago set aside the sentence and ordered that the case be sent back to a federal judge in Houston for resentencing.

The Supreme Court case is Jeffrey Skilling v. United States, No 11-674. (Reporting By James Vicini, editing by Dave Zimmerman)

Comments

[RTIII]

11:51 PM on 04/19/2012

I would be willing to make this man a deal: Admit your crimes in public, give EVERYTHING you still possess to your victims and become a true pauper, eligible for welfare but barred from taking it, and ineligible for any help from any person above median income in exchange for your freedom - NO HOUSING FROM FAMILY OR RICH FRIENDS for the rest of your life... Deal?

[kdraper]

09:27 AM on 04/17/2012

I will say it again, "its just business, nothing personal".

[big tom]

09:11 AM on 04/17/2012

has the winner of the ken lay look alike contest been located yet ?

[Canaris]

10:54 PM on 04/16/2012

Ah yes, Jeff Skilling and Enron. Another shining example of how the markets police themselves.

[southred]

09:46 PM on 04/16/2012

YES>>>>>>>

[catbite]

07:42 PM on 04/16/2012

Guilty as charged. I only wish that a number of Wall Street bankers join him in the slammer.

[Jen Celli]

05:48 PM on 04/16/2012

Gee Jeff, prison food doesn't agree with you?

[big tom]

05:47 PM on 04/16/2012

where is the winner of the ken lay look alike contest.... funny how he died just ahead of his trial ... lets get sherrif joe or donald trump an this case..they will uncover the truth...

[signgrrl]

08:04 PM on 04/16/2012

start with a certain piece of property in paraguay . . . . .

[UncleDale]

04:52 PM on 04/16/2012

Sorry,Jeff,you did the crime and willh ave to do the time...;if you had only done your dirty deeds on Wall Street and crashed the economy, you would be a free man today.

[scndchnchtr]

04:50 PM on 04/16/2012

Enron: poster boy of why utility deregulation is a bust. That and among other things my utility bill ever month.

[Snake1994]

04:49 PM on 04/16/2012

How come all the Wall Street con men responsible for the financial crisis aren't in the same boat as this guy?

[frank adam]

05:01 PM on 04/16/2012

He's the sacrificial token along with Madoff and Martha Stewart. Don't expect anymore.
This is not your father's U.S.

[PitBullWoman]

08:34 AM on 04/17/2012

Because he was a "new money" upstart with no real connections. "Old money" thieves and murders do as they please because the "old boys" protect their own. The only way that lot is ever punished is when the people rise up and chop off their heads.

[chichi55]

04:48 PM on 04/16/2012

Jeff must be so pissed. Here all he did was destroy his company, scam a bunch of investors and states out of their money and he sits rotting in jail. And then along come the Kings of Finance on Wall Street and take down the entire economy of the country and almost the world and no one is punished. I would be pissed too. Where is the fairness, right? I guess you didn't pay off the right people.

[Robert Frano]

04:33 PM on 04/16/2012

I / my Significant Other / cats would currently be homeless...if not for a tiny $$ left by a relative.

The reasons for our unemployed status are many / varied, but reflect what I (subjectively) call the modern ‘neo-legal’ concept that Americans who send more than a single resume/year are committing a 'R.I.C.O.' felony.
(...Sarcasm Alert!!)

Suffice to say: with 30+ commendations as a first responder & a geologically-solid, (pre-Geo. ‘What? ME? Worry?!' Bush employment history, I / my S/O, (with equal credentials/experience), should (almost) see employers in 'Russell-Crow-like' gladiatorial-contests outside our N-NJ-slum-apartment!

Lest I sound overly self-promotional, the same statement applies to millions of so-called ‘u-6’ Americans, ready & rarin’ to resume productive employment!
...As soon as the neo-employer class declares the war-on-workers won/over...
ANYWAY...MY point is...

When I consider the Skilling’s, Lays, & Keating’s, as in Ch. Keating / his 5-senate-co-conspirators, (a microcosm of the S&L-bank-fraud)...and the current mortgage-bubble/serial-forged-paperwork-/-unpunished-felons scandal...

I reflect on several million Americans facing homelessness, unemployment, and premature death, ironically, just like Kenney-boy-Lay's;
…except that their life-threatening stress & heartache is UTTERLY guilt free!

...It nauseates like a Tosh2.0-hurling-video!!
These crimes should be considered / punished as a form of intentional murder when the result in Grandma Smith / Grandpa Jones untimely deaths!

[the99pct]

04:31 PM on 04/16/2012

We will all see more of these creeps if Mitt Romney gets elected. This guy wiped out life savings of thousands of ENRON employees and those who were fooled by wall street fund managers by inflating ENRON stocks when internally the company was sinking.

You want a repeat of more these, vote for the private sector wall street guy MItt Romney. He has already given a preview by refusing to release his past tax returns and holding off releasing his 2011 tax returns. What is he hiding. Lots of scandals like ENRON.

[blndgenie]

04:38 PM on 04/16/2012

Shall we discuss the Dem's poster boy Corzine, who made Enron look like chump change?

[nevergiveup]

04:43 PM on 04/16/2012

Untrue. More Faux talking points?

[the99pct]

04:57 PM on 04/16/2012

ENRON was a publicly traded company, thousands of employees had been forced to invest in its stock for 401(k), audited by Arthur Anderson & Company and financials were certified as true. Wall Street crooks with insider information fooled public in to investing in a worthless stock.

Sounds more like Bain Capital than MF Capital! We are talking apples and oranges.

[John in Exile]

04:29 PM on 04/16/2012

What is surprising is that Kenneth Lay and Jeffrey Skilling didn't think they were doing anything wrong. Even when they were gleefully conspiring to bankrupt California, impoverish their loyal employees and game the system in every way imaginable, they thought that they should be rewarded for their cleverness. What is even more surprising is that there is a whole class of people who fancy themselves "financial managers" who still believe that their only obligation is to enrich themselves beyond all imagination. Why should they believe anything else? They have an entire political party who are putting their viewpoint into legislation. If the Republicans say it's okay, why check with your conscience?

[blndgenie]

04:39 PM on 04/16/2012

AHEM: Cor z i n e

[nevergiveup]

04:45 PM on 04/16/2012

Nothing and no one compares to the damage inflicted by these Texas criminals who caledl themselves businessmen.