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CNN Live At Daybreak
Downfall of Energy Giant
Aired February 20, 2004 - 05:04 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Is Jeffrey Skilling the guy who brought down Enron or merely a scapegoat? It could be up to a jury to decide. The former Enron CEO now faces nearly three dozen criminal charges in the downfall of the energy giant.
CNN's Ed Lavandera takes a closer look.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): Prosecutors say Jeffrey Skilling orchestrated the gimmicks and financial maneuvers that kept Enron alive. That description is part of a 35 count criminal indictment against Enron's former chief executive.
UNIDENTIFIED MALE: In short, the indictment alleges that this was THE guy at Enron.
LAVANDERA: Skilling is accused of fraud, conspiracy and insider trading. If convicted, he may have to spend the rest of his life in prison and fork over $80 million in fines. Skilling pleaded not guilty. His attorneys say he's a scapegoat.
DANIEL PETROCELLI, SKILLING'S ATTORNEY: Jeff Skilling has nothing to hide. He did not steal. He did not lie. He did not take anyone's money.
LAVANDERA: Skilling left Enron six months before it collapsed for what he called "personal reasons." He says he wasn't aware of the shady accounting practices. But prosecutors aren't buying that argument.
STEVE CUTLER, DIRECTOR OF ENFORCEMENT, SECURITIES AND EXCHANGE COMMISSION: We are by now all too familiar with the phenomenon of executives who put themselves at the center of what would appear to be great corporate achievements, but who then loudly proclaim their ignorance when the appearance of success gives way to the reality of corruption.
LAVANDERA: Skilling lives in this Houston neighborhood, in a $4 million mansion which "Houston Chronicle" lifestyle columnist Shelby Hodge describes as a Mediterranean ego palace. She says Skilling has kept a low profile since Enron's collapse.
SHELBY HODGE, "HOUSTON CHRONICLE": People resent the fact that he's living in a big, brand new, multi-million dollar house and was the head of a company that fell to pieces and cost a lot of people their life savings. LAVANDERA (on camera): So far, Skilling is the highest ranking Enron executive who has been charged. But now the attention moves one step higher on the corporate ladder, toward Ken Lay, Enron's top man. But officials acknowledge making that case will be much tougher.
Ed Lavandera, CNN, Houston.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired February 20, 2004 - 05:04 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Is Jeffrey Skilling the guy who brought down Enron or merely a scapegoat? It could be up to a jury to decide. The former Enron CEO now faces nearly three dozen criminal charges in the downfall of the energy giant.
CNN's Ed Lavandera takes a closer look.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): Prosecutors say Jeffrey Skilling orchestrated the gimmicks and financial maneuvers that kept Enron alive. That description is part of a 35 count criminal indictment against Enron's former chief executive.
UNIDENTIFIED MALE: In short, the indictment alleges that this was THE guy at Enron.
LAVANDERA: Skilling is accused of fraud, conspiracy and insider trading. If convicted, he may have to spend the rest of his life in prison and fork over $80 million in fines. Skilling pleaded not guilty. His attorneys say he's a scapegoat.
DANIEL PETROCELLI, SKILLING'S ATTORNEY: Jeff Skilling has nothing to hide. He did not steal. He did not lie. He did not take anyone's money.
LAVANDERA: Skilling left Enron six months before it collapsed for what he called "personal reasons." He says he wasn't aware of the shady accounting practices. But prosecutors aren't buying that argument.
STEVE CUTLER, DIRECTOR OF ENFORCEMENT, SECURITIES AND EXCHANGE COMMISSION: We are by now all too familiar with the phenomenon of executives who put themselves at the center of what would appear to be great corporate achievements, but who then loudly proclaim their ignorance when the appearance of success gives way to the reality of corruption.
LAVANDERA: Skilling lives in this Houston neighborhood, in a $4 million mansion which "Houston Chronicle" lifestyle columnist Shelby Hodge describes as a Mediterranean ego palace. She says Skilling has kept a low profile since Enron's collapse.
SHELBY HODGE, "HOUSTON CHRONICLE": People resent the fact that he's living in a big, brand new, multi-million dollar house and was the head of a company that fell to pieces and cost a lot of people their life savings. LAVANDERA (on camera): So far, Skilling is the highest ranking Enron executive who has been charged. But now the attention moves one step higher on the corporate ladder, toward Ken Lay, Enron's top man. But officials acknowledge making that case will be much tougher.
Ed Lavandera, CNN, Houston.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
