Lay, Skilling guilty on nearly all counts

A ‘tremendous win’
In Washington, Deputy U.S. Attorney General Paul McNulty hailed the convictions as a “tremendous win.”

“Lay, Skilling and their numerous co-conspirators perpetrated an elaborate scheme to mislead analysts and investors about Enron’s true financial picture,” he said. “The message of today’s verdict is simple: Our criminal laws will be enforced just as vigorously against corporate executives as ... with street criminals.”

White House spokesman Tony Snow concurred, saying, “The administration has been pretty clear there’s no tolerance for corporate corruption. ... The Justice Department has been going aggressively after those who are involved.”

One former Enron employee, Chris Jones, 35, stood outside the courthouse as his former bosses left the building. The guilty verdicts, he said, were some consolation.

“If it (the guilty verdict) hadn’t happened it would have been an open wound,” he said. “This brings closure for some people.”

Enron investor Don Chandler, who lost $11,000 on the stock, said, “Three cheers for the jury. It’s a good day for justice.”

“The ones that lost their security or their retirement — nothing that happened today is going to bring that back for them,” prosecutor Berkowitz said. “They’re not going to get their retirement money or their security back.

“What we do hope is that today’s verdict lets them know that the government will not let corporate leaders violate their trust and get away with it.”

Asked what was next, the prosecutor said, “We’re probably going to step aside and go get a well-deserved drink and an afternoon off.”

For Lay, the verdict appeared to mark the polar opposite of the man he once was: the founder and CEO of the seventh-largest company in America, nothing less than a titan in Houston, known for his millions in philanthropy and a leading political patron of President Bush who once had the former Texas governor’s ear.

In an act that seemed humiliating, each of his children was required to step forward in an afternoon court hearing and sign a paper using their own houses to guarantee the terms of Lay’s release until sentencing.

Then Lay walked outside the federal courthouse and declared himself blessed because “we believe that God in fact is in control, and indeed he does work all things for good for those who love the lord.”

“I firmly believe I’m innocent of the charges against me,” Lay said. “I believe that to this day.”

Most important testimony
Jurors said some of the most important testimony came from former Enron treasurer Ben Glisan, who was already serving a five-year prison sentence after pleading guilty to a charge of conspiracy.

Glisan testified Skilling and Lay knew Enron was in deep financial trouble and tried to hide it.

The jury believed him, not his former bosses, said juror Freddy Delgado.

“To say that you didn’t know what was going on in your own company is not the right thing,” he told reporters.

Fastow tearfully told the jury of his misdeeds and said Skilling and Lay were deeply involved in what he described as a massive cover-up of Enron’s troubled finances.

He has pleaded guilty to conspiracy in exchange for a 10-year jail sentence which he likely will begin serving soon.

Prosecutors said Lay and Skilling milked Enron for hundreds of million of dollars and lived lives of luxury while driving the company into bankruptcy.

Lay took home $220 million in compensation from the sale of Enron shares from 1999 through 2001, while Skilling got $150 million, Assistant U.S. Attorney John Hueston said in opening arguments.

Lay used his and the company’s money to gain political power by donating heavily to candidates, particularly Republicans and especially the Bush family.

He was the biggest donor to President Bush, who before the Enron scandal referred to him warmly as “Kenny Boy.”

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