Legal News

Skilling files federal appeal, claiming murky "honest services" application and "pervasive media coverage"

By Richard Binder

Former Enron CEO Jeffrey Skilling has asked the Supreme Court to overturn his 2006 conviction for insider trading. The current appeal says Skilling was improperly convicted of withholding his "honest services" from Enron's shareholders, which would be a violation of federal law dealing with fiduciary responsibilities.

There was no immediate reaction from the Justice Department, which will be required to file a written response to the appeal in coming weeks. The justices then will schedule a private conference to decide whether to take the case.

In a 50-page petition filed Monday, Skilling's attorney, Daniel Petrocelli, said "pervasive media coverage" prevented his client from receiving a fair trial from a Houston jury. A Los Angeles-based trial attorney with O'Melveny & Myers, Petrocelli told CNN that the questions raised by this case have current relevance, given the financial meltdown. "The issues presented in this appeal cry out for resolution by the Supreme Court," he said.

Skilling, 55, is currently in federal prison. He was convicted on 19 counts of fraud and conspiracy relating to the collapse of the Texas-based energy services giant in late 2001.

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Full post as published by Legal Pad | LA on May 12, 2009 (boomark / email).