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Prosecutors Seek Full Payment From Skilling

From Bloomberg News

Federal prosecutors want Jeffrey K. Skilling, the convicted former chief executive of Enron Corp., to pay the full $182.8 million in criminal proceeds he and late Enron founder Kenneth L. Lay obtained by defrauding shareholders.

Lay, convicted in May of securities fraud with Skilling, died of a heart attack July 5, before he could exhaust his appeals. As a result, his conviction and forfeiture requirements will be dismissed. The government had sought $43.5 million from Lay and $139.3 million from Skilling.

In papers filed in Houston federal court, prosecutors told U.S. District Judge Sim Lake that Skilling, 52, was liable for Lay’s profit.

Skilling’s lawyers are seeking to use some of the ex-CEO’s assets to pay $30 million in legal bills, a move Enron prosecutor Sean Berkowitz said would thwart justice for former Enron shareholders and employees.

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