Appeals Court Orders New Sentence for Enron’s Jeffrey Skilling

A federal appeals court has ordered a new sentence for former Enron chief executive Jeffrey Skilling, convicted for his role in the collapse of the energy company.

The appeals court upheld Skilling’s conviction but overturned his 24-year sentence, the Associated Press reports. Skilling was convicted of fraud, conspiracy, insider trading and lying to auditors.

Skilling’s appeal, filed by O'Melveny & Myers, had contended his 24-year sentence was six years longer than the average federal sentence for murder. The sentencing judge, U.S. District Judge Simeon Lake III, is known for tough sentences.

The 105-page opinion by the New Orleans-based 5th U.S. Circuit Court of Appeals said Lake had incorrectly applied sentencing guidelines, according to the AP story.

Skilling’s appellate lawyer, Daniel Petrocelli, had also attacked as flawed a prosecution theory that Skilling had deprived the company of honest services. Petrocelli contended Skilling was acting in an effort to improve the company’s stock value.