Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Supreme Court hears former Enron CEO's appeal



WASHINGTON (CNN) -- The U.S. Supreme Court will hear arguments Monday from an attorney for a former Enron chief executive seeking to overturn his 24-year conviction on securities fraud and other charges.

Jeffrey Skilling was convicted of 19 counts of fraud, conspiracy and insider trading in the collapse of the Texas-based energy services company. He had been a longtime executive at what became the world's largest wholesaler of gas and electricity.

Skilling resigned under pressure in 2001 amid the company's financial crisis.

Thousands of investors and company employees lost their savings and jobs in a case that became a poster child for corporate corruption cases in the past decade.

Skilling and Enron's top executive, Kenneth Lay, were accused of spearheading a campaign to mislead investors and shareholders with an aggressive investment strategy aimed at suppressing the company's shaky financial footing.

Both men were convicted in May 2006. Skilling was sentenced to more than 24 years in prison and fined $45 million. Lay died in July 2006 before sentencing. A federal appeals court upheld Skilling's conviction.

In the appeal, attorney Daniel Petrocelli argues that all convictions should be overturned because his client was improperly convicted of withholding his "honest services" from Enron's shareholders, a violation of federal law dealing with fiduciary responsibilities.

Petrocelli has said the government never proved Skilling's conduct was designed to achieve "private gain," as the law required, as opposed to advancing the company's interests. He also said the "honest services" requirement is too vague.

"The government did not contend, and the record did not suggest in any way, that Skilling intended to put his own interests ahead of Enron's," the appeal said.

Oral arguments begin at 1 p.m. ET. To top of page

Index Last Change % Change
Dow 17,745.98 -5.41 -0.03%
Nasdaq 5,128.79 17.06 0.33%
S&P 500 2,108.63 0.06 0.00%
Treasuries 2.27 -0.01 -0.48%
Data as of 9:48pm ET
Company Price Change % Change
Facebook Inc 95.21 -1.78 -1.84%
Bank of America Corp... 18.13 -0.03 -0.17%
Microsoft Corp 46.88 0.59 1.27%
Whole Foods Market I... 36.08 -4.74 -11.61%
Ford Motor Co 15.10 -0.11 -0.72%
Data as of 4:01pm ET
Sponsors

Sections

Loosening state restrictions have given gun silencer sales a boost. Silencers are now legal in 41 states, compared to 37 four years ago. Also some gun makers are making it easy to attach them. More

Pinterest reveals its diversity numbers and announces how it plans to diversify its workforce. More

Fast-food chains that operate in more than 30 locations nationwide are the sole target of a new rule in New York to hike their minimum wage to $15. But consumers and small business owners, as well as some employees, may be the ones to pay the price. More

You can't blame it on the economy anymore. More Millennials now have jobs, but are still living at home. More