Robin Caldwell

June 24, 2010 | District

SCOTUS Sides with ex-Enron CEO Skilling; Could Affect Blagojevich Outcome

Though it is not enough to guarantee an overturned conviction, the Supreme Court sided with ex-Enron CEO Jeffrey Skilling in limiting the use of the “honest services” law, a sometimes vague federal fraud law that enables prosecutors to criminalize mistakes and minor transgressions in both business and politics.

The Associated Press reports,

The court said Thursday that the “honest services” law could not be used in convicting Skilling for his role in the collapse of Enron. But Justice Ruth Bader Ginsburg said in her majority opinion that the ruling does not necessarily require Skilling’s conviction to be overturned.

Justice Bader Ginsburg wrote one of three opinions. The Wall Street Journal states, Justice Antonin Scalia wrote an opinion concurring in part and concurring in the judgment. Justice Sonia Sotomayor wrote an opinion concurring in part and dissenting in part.

Former newspaper magnate Conrad Black also stands to benefit from the court’s ruling to side with him as well. It will be up to an appeals court to decide if his conviction can be overturned.

Today’s ruling could also affect the ongoing prosecution of former Illinois Gov. Rod Blagojevich and the convictions of former Alabama Gov. Don Siegelman and ex-HealthSouth CEO Richard Scrushy, reports AP.

Skilling was convicted of 19 of 28 counts of securities fraud and wire fraud and acquitted on the remaining nine, including charges of insider trading. He was sentenced to 24 years, 4 months in prison, and cannot be released before serving less than 20 years, 4 months. In addition, he must pay $630 million to the government, which includes a $180 million fine.