Sentence for Enron Exec Irks Both Sides

A U.S. federal judge Monday rejected a plea for mercy from prosecutors and sentenced a former Enron Corp. executive who testified against Kenneth L. Lay and Jeffrey K. Skilling to 30 months in prison.

David W. Delainey, a Canadian who pleaded guilty to insider trading in 2003 and cooperated extensively with the U.S. Justice Department’s Enron Task Force, had been praised by prosecutors for his help in the case.

Enron collapsed in a tangle of fraud in 2001, causing investors to lose billions and costing employees their jobs and retirement savings. Delainey’s testimony helped prosecutors win a conviction in May against Lay, the former chairman of Enron, and Skilling, the former chief executive.

The sentence handed down by U.S. District Judge Kenneth Hoyt was less than the 33 to 41 months provided under federal sentencing guidelines, but Deputy Task Force Director Kathryn Ruemmler had sought leniency and defense lawyer John Dowd had recommended probation.

“I don’t share the government’s view or your counsel’s view that probation’s appropriate,” Hoyt told Delainey. He noted that prosecutors had still charged Delainey with insider trading.

The judge said Delainey was a top executive, not middle management, and had headed two different business units at Enron.

Delainey tried to right his wrongs but has not suffered enough, Hoyt said.