Skilling's grim future

HOUSTON, TEXAS - Jeffrey Skilling, the former Enron executive, continues to protest his innocence. But barring a successful appeal, he could well be past 70 when he emerges from jail. A federal judge sentenced him to serve 24 years and four months on 19 counts of fraud and conspiracy.

As president and chief executive of the high-flying energy company, Skilling helped devise accounting tricks that masked its financial troubles. He was convicted alongside Kenneth Lay, the company's chairman, at a trial in May.

Some critics believe that the punishments for white-collar crime have grown too harsh. Indeed, under the latest federal sentencing guidelines, Judge Simeon Lake could have dealt even more severely with Skilling. Yet testimony from Enron employees and shareholders underscored the need for strong punishment.

At the sentencing, they spoke of lost jobs and vaporized savings. Skilling's crimes, noted Judge Lake, "imposed on hundreds, if not thousands, a life sentence of poverty."

At their trial, Skilling and Lay argued that everything they had done was perfectly legal. Their unrepentant stance disgusted many onlookers, not merely former workers who had placed their faith in the company. It also contrasted poorly with the candid admissions of other executives, including Chief Financial Officer Andrew Fastow (Fastow pleaded guilty and was sentenced to a six-year jail term).

Lay's death last summer prompted a recent ruling that voided his conviction, on the grounds that he would be unable to pursue his appeal. For those victimized by Enron's downfall, that put his assets (at least for now) out of reach. About $45 million of Skilling's assets, on the other hand, will be held in escrow for such claimants, pending his appeal.

Lay's evident evasion of justice (at least in its earthly form) may have increased the pressure on Judge Lake to deal harshly with Skilling. In announcing his sentence, the judge noted Skilling's lies, saying they had added time to his sentence.

Yet, amid the corporate implosions Enron came to symbolize, Skilling can claim one small consolation. The record for the longest jail term, ever, for white-collar crime is safe with WorldCom founder Bernard Ebbers. He is serving 25 years.