Enron's Ex-CEO Turns Himself In
After five years heading Enron's operations, Skilling at last was promoted to chief executive in February 2001, at a time when the government claims the company had begun to fall apart. Just six months later, Skilling stepped aside from what he had called his dream job, citing "personal reasons." Enron filed for bankruptcy that December.
Unlike Lay and other top Enron leaders, who asserted their Fifth Amendment rights against self-incrimination, Skilling testified before Congress in early 2002, saying he had no hint that trouble loomed when he left the company. Though many of the charges in the indictment accuse him of knowing much about Enron's financial crisis, he wasn't charged with perjury.
Skilling is likely to face trial alongside former chief accountant Richard A. Causey, who was charged with conspiracy and securities fraud last month. Prosecutors filed seven new criminal charges against Causey yesterday, including insider trading, and sought the court's permission to seize his Texas home and more than $2.5 million in securities.
"It is much easier to bring charges than to prove them," said Reid H. Weingarten, a lawyer for Causey. "We continue to believe that no fair-minded jury will ever find that Rick Causey acted with criminal intent."
Lawyers for Skilling and Causey said they will argue their clients relied on advice from the lawyers, accountants and subordinates who vetted many of the deals that cut to the heart of the fraud allegations.
"In order to convict Skilling, you almost have to accept the premise that Enron for years was a front for a criminal enterprise," said Robert A. Mintz, a former prosecutor who has followed the Enron probe. "I expect this is going to be a very difficult case for the government."
Bruce A. Hiler, another lawyer for Skilling, said in an interview that the government had "scapegoated" his client in response to public outcry about devastating stock losses and job cuts at Enron.
Emotions continue to run high among many Houston residents even though two years have passed since the bankruptcy.
"There are certainly still a lot of people in this community who were hurt in a very real way by the demise of Enron," said lawyer Philip H. Hilder, who represents former Enron employees. "There's a certain residue of hostility that still exists out there."
Special correspondent Roy R. Reynolds in Houston contributed to this report.
© 2004 The Washington Post Company
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Jeffrey K. Skilling, center, former chief executive of Enron, arrives at the federal courthouse in Houston in handcuffs.
(David J. Phillip -- AP)
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_____Live Discussion_____
11 a.m., Friday: The Post's Carrie Johnson takes your questions about Enron and the latest indictment.
Transcript: Former federal prosecutor Kirby D. Behre discusses the Enron scandal and Skilling's surrender.
Transcript: Peter Elkind, co-author of "The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron," discussed the Enron scandal in a Jan. 14, 2004, online discussion.
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_____Multimedia_____
Video: Skilling's attorney, Dan Petrocelli, defends his client during a press conference. (Feb 19, 2004)
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