Business and Finance

NEW ORLEANS–Former Enron Corp. chief Jeffrey Skilling, convicted for his role in the once-mighty energy giant’s collapse, took risks, but they were always for the firm’s benefit, his lawyer says.

Skilling was convicted on a legal theory that he deprived Enron of his "honest services" and put his own interests above those of the company, defence lawyer Daniel Petrocelli told a three-judge panel of the 5th United States Circuit Court of Appeals yesterday. But Skilling’s actions were well-intentioned, Petrocelli argued.

Meanwhile, prosecutors argued Skilling’s actions were dishonest and contrary to the needs of the company’s shareholders and its financial stability.

Skilling was convicted in 2006 for his role in Enron’s collapse.

Skilling, who is serving a 24-year sentence in a federal prison in Minnesota, was not present during yesterday’s arguments. His wife and siblings were there, however.

Company founder Kenneth Lay also was convicted, but he died less than two months later and his convictions were vacated.

Petrocelli made the "honest services" theory the centerpiece of his arguments payday loans. Legal experts say that is Skilling’s best chance at overturning some or possibly all of his convictions.

Prosecutors theorized at trial that Enron employees were bound to serve honestly and not put their interests ahead of the company’s. If the employees failed to do so, they deprived the company of “honest services" and committed a crime.

The 5th Circuit has already overturned several Enron-related convictions based on the honest services theory, ruling that executives did only what Enron wanted them to do and did not profit at its expense.

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