Skilling Ordered to Prison Immediately

Jeffrey Skilling, the 53-year-old former Chief Executive Officer of Enron, was convicted in May of 19 counts of conspiracy, fraud, and insider trading, after an arduous trial. U.S. District Judge Sim Lake sentenced Skilling to 24 years and 4 months in prison, which was the harshest punishment handed down to any of the disgraced former Enron executives.

The shady business deals and underhanded accounting tricks played by the higher ups at Enron resulted in the loss of thousands of jobs, more than $60 billion in stock, and more than $2 billion in employee pension plans in 2001, after the company crashed disastrously.

Skilling’s lawyer immediately filed an appeal, and while awaiting that appeal Skilling filed a request to remain free on bail. Skilling is expected to argue that his trial attracted negative publicity because it was not moved from Houston, and many witnesses who would have supported his defense were intimidated by the government’s refusal to grant them immunity, and they did not testify because of fear of being prosecuted themselves.

Tuesday Skilling didn’t get his wish. Judge Patrick Higginbotham of the 5th U.S. Circuit Court of Appeals denied Skilling’s request, writing that "Skilling raises no substantial question that is likely to result in the reversal of his convictions on all of the charged counts." Higginbotham denied Skilling’s request for bail pending his appeal, and vacated an earlier order that had delayed his prison report date.

As a result of Higginbotham’s decision, Skilling is now required to report to a low-security facility in Waseca, MN, to begin serving his 24-year sentence. Although the appeal process will still continue, Skilling will have to give up his freedom immediately while waiting in vain for the court to lighten his sentence. If he behaves while in prison, Skilling will be able to trim 54 days a year off his sentence, and successful completion of alcohol and mental health counseling will allow him to take a year off his sentence.