Jeff Skilling
Jeffrey K. Skilling (born November 25, 1953) is an American business executive and former chief executive officer of Enron Corporation. After Enron’s collapse he was convicted in 2006 of conspiracy, securities fraud, insider trading and false statements to auditors. He was initially sentenced to 24 + years in federal prison, later reduced to 14 years, and released from custody on February 21, 2019.[1][2]
Early life and career
Jeffrey Keith Skilling was born in Pittsburgh, Pennsylvania. He earned his B.S. from Southern Methodist University and his M.B.A. from Harvard Business School.[1] He joined consulting firm McKinsey & Company and later moved to Enron, where he became chief operating officer and then CEO. During his tenure he promoted “mark-to-market” accounting and aggressive risk management, which critics say fostered the culture of fraud that led to Enron’s bankruptcy in December 2001.
Federal offense and prosecution
On May 25, 2006 a federal jury found Skilling guilty on one count of conspiracy, one of insider trading, five of making false statements to auditors and twelve of securities fraud.[3] On October 23, 2006 Judge Sim Lake sentenced him to 292 months (24 years and 4 months) in prison and imposed large forfeitures.[4] In June 2013 a plea deal and resentencing reduced his term to 168 months (14 years) in exchange for forfeiting approximately US$42 million and foregoing further appeals.[2]
Incarceration and prison experience
Skilling served his federal term at FPC Montgomery and later transferred to a halfway-house in Texas. He remained in custody until his release on February 21, 2019, having served approximately 12 years.[5]
Life after release
After release Skilling entered private business and explored ventures in energy-trading platforms, such as Veld LLC. He remains barred from serving as an officer or director of a public company as part of his settlement with the SEC.[6]
Notable associates and related cases
- Ken Lay – Founder/Chairman of Enron and convicted in related fraud case (died before sentencing).
- Andrew Fastow – Enron CFO who pled guilty and cooperated, serving six years.
- Enron Corporation – Once the seventh-largest U.S. company whose collapse triggered major reforms including the Sarbanes-Oxley Act.
References
- ↑ 1.0 1.1 Wikipedia. “Jeffrey Skilling.” https://en.wikipedia.org/wiki/Jeffrey_Skilling
- ↑ 2.0 2.1 U.S. Department of Justice. “Former Enron CEO Jeffrey K. Skilling Resentenced to 168 Months for Fraud, Conspiracy Charges.” June 21, 2013. https://www.justice.gov/archives/opa/pr/former-enron-ceo-jeffrey-skilling-resentenced-168-months-fraud-conspiracy-charges
- ↑ Wired. “Enron’s Lay, Skilling Convicted.” May 25, 2006. https://www.wired.com/2006/05/enrons-lay-skilling-convicted/
- ↑ The Guardian. “Enron’s Jeffrey Skilling sees jail sentence reduced to 14 years.” June 21, 2013. https://www.theguardian.com/business/2013/jun/21/enron-jeff-skilling-sentence-reduced
- ↑ Reuters. “Former Enron CEO Jeffrey Skilling Released from Federal Custody.” February 21, 2019. https://www.reuters.com/article/business/former-enron-ceo-jeffrey-skilling-released-from-federal-custody-idUSKCN1QA2ZD/
- ↑ Investopedia. “Enron Executives: What Happened, and Where Are They Now?” December 19, 2022. https://www.investopedia.com/enron-executives-6831970