Supreme Court to Review Conviction of Enron's Skilling

Posted by: Michael Orey on October 13, 2009

Ex Enron CEO Jeffrey K. Skilling’s quest to have his 2006 fraud conviction overturned got a boost today, when the U.S. Supreme Court agreed to consider his case. Skilling cited two reasons why he deserves a new trial – that he couldn’t receive a fair trial in Enron’s hometown of Houston; and that one charge on which he was convicted, “honest services” fraud, is unconstitutionally vague. One or both arguments may have piqued the Justices’ interest – they don’t say.

When I spoke to criminal-defense attorneys in January, just after the U.S. Court of Appeals for the Fifth Circuit upheld Skilling’s conviction, few seemed surprised by that result. That surprised me, because I thought the government’s use of the honest services statute was pretty controversial. Added to the federal criminal code in 1988, the law makes it a crime to “deprive another of the intangible right of honest services” for private gain. The government commonly levies it against executives who allegedly put their own interest ahead of their company’s. Alan Vinegrad, a former U.S. Attorney in New York who is now at the law firm Covington & Burling told me in January that, at one time, the honest services charge “was almost unlimited in its potential application and prosecutors were using it in a wide variety of cases.” But, he noted, a series of court rulings have pared back its use.

Perhaps not enough for the Supreme Court, though. In October Adam Liptak of the New York Times wrote that Justice Antonin Scalia, for one, felt that “federal prosecutors had developed an unseemly crush on a particularly vague law.” Skilling’s case now joins two others in which the High Court has agreed to review the law, including one involving the conviction of newspaper executive Conrad M. Black. Executives everywhere might be rooting for Skilling and Black to succeed.

Reader Comments

thebob.bob

October 13, 2009 3:54 PM

This is where we find out if the Bush Crime Family managed to take over the Judicial Branch by installing "bought and paid for" shills. In their minds, Corporations can do no wrong. They were endowed by their creator (the government) with the same inalienable rights as human beings, even more since they can live forever.

Let's see what happens when a dues paying Republican CEO from Texas goes before the Corporate bench.

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Arthur Mboue

February 27, 2010 11:09 AM

I work too much on Enron case or all my research works lead to understand Enron case. I was suppose to have a huge and precedent frame in case he wins a new trial. I did vote for this change of venue (or avenue)but the judge did not see that necessary. But, like Skilling, although I am a MBA and JD, inactive corporate lawyer (SEC reporting , restatement,...), financier, managing accountant, researcher and tehnical controller, I always wanted to lead a big executive office (CFO, Corp Controller, external reporting VP,...), a consulting w/ 'had been' or alike , I will make a living a last after being degraded just to fix a pre-set stereotypes (w/ bets votes)
Arthur Mboue, MBA, JD

Jimmy Fuking Carter

March 4, 2010 12:18 PM

Jeffery Skilling is a pawn. Never the less he needs to rot in jail. Hopefully some former Enron employees will have the forethought to get incarcerated to the same jail where they will be free to gang rape Jeff's mouth for the duration of his sentence. Nothing wipes a fake look of sorrow off a pigs face like a good mouth rape.

OXYGEN

March 27, 2010 4:39 PM

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