Acc-Enron Bankruptcy

Topics: Enron, Law, Appeal Pages: 2 (462 words) Published: February 1, 2013
Jeffrey Skilling was the president and chief operating officer of Enron. During Skilling's management, he and other executives manipulated finances so that financial results falsely met or exceeded analysts’ expectations. They also made public statements that misrepresented the health of the company. They sought artificially to support and inflate Enron’s stock price by falsely characterizing Enron as a company whose earnings and future prospects were determined to a substantial extent by Enron Broadband Services (EBS). He and other Enron executives claimed that EBS was nearly fully functional. In fact, it remained only unproved concepts and laboratory demonstrations that Skilling was advised would take years to complete and might never be realized. Skilling used the reserves to boost profits in other sections of the company, particularly Enron Energy Services (EES), which, like EBS, had been touted as a major growth sector for the company. Enron hid EES’s severe business failure from the investigating public by moving large portions of EES’s business...into Enron Wholesale. Skilling initiated a program in the latter part of his career at Enron to sell a set amount of the company’s stock monthly. Between 1998 and 2001, Skilling received $200 million from the sale of Enron stock options and restricted stock. In August 2001, Skilling unexpectedly resigned. Skilling was fined $45 million and now is currently serving a 24-year-and-4-month jail sentence for fraud and insider trading, but the former Enron chief executive is continuing to push his case for innocence through the US legal system. His lawyers have fought a series of battles at various levels of seniority in the US court system, and on various grounds of appeal. His latest challenge came in September this year, when lawyers filed an appeal against an April 2011 ruling that upheld a potential error in the guidance that led to his 2006 conviction. He had appealed the 19 out of...
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