Posts Tagged ‘enron’

Justices Bothered By Vague Law Used Against Ex-Enron Exec

Thursday, December 10th, 2009

480px-Stephen_Breyer,_SCOTUS_photo_portraitThe blog has previously mentioned Enron chief Jeffrey K. Skilling’s appeal to the Supreme Court about the vagueness of the “honest services” law he was convicted under. As it turns out, the court seems inclined to agree with Mr. Skilling and his Houston criminal lawyer.

The law in question was enabled as a federal statute in 1988 and it criminalizes the act of “depriving another of the intangible right of honest services.” The 28 word-long law has the justices scratching their heads as it could technically be used against any worker who has committed mild transgressions such as calling in sick in order to have a day off. Justice Stephen Breyer (pictured at right) has said “Perhaps there are 150 million workers in the United States, I think possibly 140 million of them would flunk” a vague honest services test. Justice Scalia called the statute a “mush of language.”

The deputy solicitor general representing the government in the case, Michael Dreeben, argued that the crime is only created for cases where the defendant had an “intent to defraud” their employer or the public and where the breach of conduct was significant.

Skilling’s appointment with the high court is still waiting to be heard, but his arguments are expected to center around the concept of private gain. He does not believe the honest service law should apply to someone who was not working to their own personal ends.

Decisions for all three cases related to the law will likely be issued in June.

To read more about the hearings, see the article in the Houston Chronicle.

Ex-Enron Chief Appealing Court Decision

Thursday, October 22nd, 2009

Benjamin ChunJeffrey K. Skilling, the former chief executive of Enron is appealing his conviction to the Supreme Court on the grounds that he had not received a fair trial and the law he was sentenced under was too vague. He believes his trial was impartial because it took place in Houston, the city where Enron was located, and, as such, the city that played home to the majority of the victim’s of the company’s demise.

The law Skilling is challenging states it is illegal to “deprive another of the intangible right of honest services.” It has so far been used by prosecutors to fight corruption and fraud, as it can be used even in cases where no theft is involved. But according to Skilling and his Houston criminal lawyer, the law is too broad to be enforceable. They also believe the law should only be used against those who have made some measurable gain. The brief filed in the courts explained that Skillet’s action “even if wrongful in some way, was not the crime of honest-services fraud, because the government conceded that his acts were not intended to advance his own interests instead of Enron’s.”

He has already appealed to the Fifth Circuit Court of appeals, who accepted many of his arguments, but refused to add a “private gain” rule to the law. The court did, however, vacate his existing sentence of 24 years in prison and $45 million in restitution. He has not yet been resentenced.

The Supreme Court will hear arguments on the case in December.

To learn more about this case, read the article in the New York Times. Image Via Benjamin Chun [Flickr]