Enron chief loses appeal, but could have jail term cut

A UNITED States court yesterday upheld the convictions of former Enron chief executive Jeffrey Skilling for his role in the collapse of the energy trading company. But it said he must be resentenced.

The ruling, handed down by the court of appeal in New Orleans, said a lower court was wrong when applying federal sentencing guidelines – which means Skilling could now receive a shorter sentence.

Skilling, who was convicted with former Enron chairman Kenneth Lay in 2006 on conspiracy and fraud charges, is serving a 24-year term at a minimum security prison in Colorado.

During lengthy appeals, his lawyers had argued that all 19 of the counts against him should have been thrown out because government prosecutors had used a flawed legal theory.

But the appeal judges said Skilling's lawyers "failed to demonstrate the government's case rested on an incorrect theory of law or that any reversible errors infected his trial".