Report: Jeff Skilling may get early release

In total, 32 people and one firm had charges brought before federal courts stemming from the energy giant's fallout. See what happened to some of the biggest players in the Enron scandal. In total, 32 people and one firm had charges brought before federal courts stemming from the energy giant's fallout. See what happened to some of the biggest players in the Enron scandal. Image 1 of / 44 Caption Close Report: Jeff Skilling may get early release 1 / 44 Back to Gallery

Former Enron CEO Jeff Skilling may be released early under an agreement being discussed with the Department of Justice, according to an announcement on the department's website.

It is unclear by how much his 24-year sentence could be shortened through a settlement, though a reduction in his sentence has long been expected because court rulings said it was too harsh. Skilling, who has served six years in prison, was convicted in 2006 of conspiracy, fraud and insider trader for his role in the energy giant's epic collapse.

The Justice Department issued a notice to victims on Thursday about the talks with Skilling's attorneys.

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"The Department of Justice is considering entering into a sentencing agreement with the defendant in this matter," the notice reads. "Such a sentencing agreement could restrict the parties and the Court from recommending, arguing for, or imposing certain sentences or conditions of confinement. It could also restrict the parties from challenging certain issues on appeal, including the sentence ultimately imposed by the Court at a future sentencing hearing."

Judge Sim Lake held a private conference call with attorneys from both side last month about the potential deal. Skilling has been waiting to be re-sentenced after a federal appeals panel ruled in 2009 that his sentencing was too harsh.

"Because of the complexity of the case and its age I think it's probably both parties felt that it was best to come up with a negotiated compromise," said Philip Hilder, a former federal prosecutor who represented Sharon Watkins, the whistle-blower in the Enron case. "Because otherwise a full-blown sentencing hearing would require a lot of resources and would be time consuming and difficult because of the age of the case."

Victims had not yet learned of the negotiations, but were concerned by the news.

"It's stunning that somebody who robs a bank of a couple thousand dollars could end up spending more time than someone like Jeff Skilling, who a lot of people believe should be in the corporate hall of shame," said Andrew Stoltmann, a Chicago-based securities attorney who represented 10 victims of the Enron scandal. "If Skilling ends up serving less than a decade, i think that undoes a lot of the deterrent impact that Judge Sims' original sentence had and that's unfortunate."

Since being convicted, Skilling has fought the charges, claiming his innocence. He filed a motion for a new trial in May 2012, claiming "newly discovered evidence" could prove his innocence.

Skilling's sentencing has been in limbo because of the 5th U.S. Circuit Court of Appeals' 2009 ruling that Lake applied federal sentencing guidelines improperly in Skilling's case, and a 2010 U.S. Supreme Court ruling that evidence did not support a component of Skilling's conviction based on allegations that he deprived the company of "honest services."

Legal experts have speculated in Houston Chronicle reports that Skilling might see his sentence reduced to around 15 years, which still would leave him far from release.

But it's possible a bargained sentencing might reduce his term further.



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