Posted May 09, 2013 01:19 pm CDT
Former Enron CEO Jeffrey Skilling will get his 24-year sentence reduced by as much as 10 years in exchange for an agreement to halt legal challenges to his conviction.
The deal announced on Wednesday allows $40 million seized by the government to be distributed to those harmed by Enron’s failure, report the National Law Journal, the Wall Street Journal (sub. req.) and the New York Times DealBook blog. The agreement calls for a new sentence of 14 years to 17.5 years in prison, according to the NLJ.
Skilling was awaiting resentencing as a result of a federal appellate opinion; that decision would have given the former executive a sentencing range about two years higher than called for in the new deal, the Wall Street Journal says.
Skilling’s lawyers were planning to seek to overturn his conviction on the basis of alleged prosecutorial misconduct, the Wall Street Journal says. The defense lawyers had said the government failed to turn over evidence from some of its interview with Enron’s former chief financial officer, Andrew Fastow, an important prosecution witness.
Skiling was convicted in 2006 on 19 counts, including securities fraud, conspiracy, making false statements to auditors and insider trading.
ABAJournal.com: “Convicted Enron chief executive could be released early from prison”