Jeffrey Skilling and the Enron Trial
In 1991, Jeffrey Skilling became the chairman of Enron Gas Services Co., as a result of the merger of Enron Gas Marketing and Enron Finance Corp. He became president and chief operating officer of Enron in 1997, second only to Enron founder Kenneth Lay.
After the Enron scandal came to light, prosecutors indicted him on 35 counts of fraud, insider trading, and other crimes. He surrendered to the Federal Bureau of Investigation on February 19, 2004, and pleaded not guilty to all charges.
The indictments emphasized his probable knowledge of, and likely direct involvement with, the fraudulent transactions within Enron. About a month after quitting Enron, Skilling sold almost $60 million of his stake in the company. As a result, prosecutors alleged that that he sold those shares with inside information of Enron’s impending bankruptcy.
Jeffrey Skilling Prosecution and Trial
Attorney Michael J. Wynne was a prosecutor in this case and gave an opinion to CNBC on Jeffrey Skilling and the Enron trial in 2006.
The jury found Skilling guilty on one count of conspiracy, one count of insider trading, five counts of making false statements to auditor and twelve counts of securities fraud. They found him not guilty on nine counts of insider trading.