HOUSTON — Former Enron Corp. Chief Executive Jeffrey K. Skilling was sentenced to more than 24 years in federal prison Monday for his role in the company's 2001 collapse, one of the longest prison terms to arise from the recent era of corporate scandals.
Skilling, who was convicted in May on 19 counts of fraud, conspiracy, insider trading and lying to auditors, had faced 24 to 30 years in prison under federal sentencing guidelines.
"Mr. Skilling and his attorneys argue that the guideline range would be tantamount to life in prison," U.S. District Judge Sim Lake said before pronouncing the sentence. "But as the many victims of his crime have so poignantly explained, his crimes have imposed on them a life sentence of poverty."
In addition to handing down a prison term of 24 years and four months, Lake ordered Skilling to pay about $45 million in restitution to the thousands of investors and employees who lost money when Enron failed. The judge set investor losses from Skilling's actions at $80 million.
Lake imposed the sentence after a two-hour hearing that featured angry testimony from former Enron workers and a ringing expression of innocence from Skilling.
"In terms of remorse, your honor, I can't imagine more remorse," Skilling told Lake. "That being said, your, your honor, I am innocent of these charges. I am innocent of every one of these charges."
Skilling's codefendant, former Enron Chairman Kenneth L. Lay, died of a heart attack July 5. Last month, Lake wiped away Lay's conviction on 10 counts of fraud, conspiracy and lying to banks, ruling that his death denied him the chance to appeal the verdict.
Skilling's pivotal role in what has been called the biggest scandal in the history of American finance made leniency unlikely, experts said. That's especially true given the long sentences handed out to other corporate criminals of the era, such as former WorldCom Inc. CEO Bernard J. Ebbers, who was sent to prison for 25 years.
"This is a very tough time to be a white-collar defendant," said Douglas R. Young, an attorney with Farella Braun & Martel in San Francisco. "In the public's mind, there is something about wanting to punish people who have seemingly been at the top of the game."
Lake denied Skilling's request to be released on bond pending appeal, ordering him to home confinement. Federal prison officials will recommend when and where Skilling should report to prison. Lake suggested the federal prison in Butner, N.C.
