Ex-Enron Employees Feel Vindicated By Guilty Verdicts

HOUSTON -- Former Enron employees' reactions ranged from elation to satisfaction to indifference after hearing about the convictions of Enron founder Kenneth Lay and former Chief Executive Jeffrey Skilling.

Lay and Skilling were convicted Thursday of conspiracy to commit securities and wire fraud in a case stemming from one of the biggest corporate scandals in U.S. history.

Sherri Saunders, 59, lost her job and $1 million in retirement savings when the energy trader went bankrupt.

She got the call at her desk about the guilty verdicts and squealed "Yes!"

"Ken Lay has been coming out of the courthouse every day saying the case is in the hands of the jury, judge and God. To me, God has spoken to him with this verdict," said Saunders.

Brian Cruver, a trader at Enron for just nine months, said he was indifferent upon hearing the verdicts because he has moved on.

He said he turned on the television to watch news of the verdicts and kept on working.

But he said he would have reacted strongly if the men had been acquitted.

"They're getting what they deserve and what Enron employees wanted," said Cruver.

Saunders and Cruver were among some 4,000 employees who were told they no longer had jobs the day after Enron filed for bankruptcy.

On that December 2001 day, they were given only 30 minutes to pack their belongings and leave the building in downtown Houston.

"I think they're getting what they deserve," said Eric Eden, a former Enron employee. "I was one of the guys who used to sit around in the office defending Enron when we talked about if it was a house of cards or not. I was of the opinion we could trust the guys above us."

Eden said it was hard to learn the truth about the company and its leaders. He does not feel bad that Skilling and Lay now face years in federal prison. Lay could spend the rest of his life behind bars.

"I don't feel sorry for (Lay) at all. I really admired Ken Lay and his management skills were unbelievable. He deceived all of us. I really think that he should have had the rug pulled out from him a long time ago," Eden said, but added, "I feel the most empathy for Ken Lay, not much for Jeff Skilling.

"I think (Lay) made a comment about having to maintain his lifestyle to some degree throughout this period of time. There's a lot of Enron employees, myself included, that didn't get to continue the same lifestyle we had from day 1," Eden said.

Paula Cory worked in businesses services and broadband at Enron for six years.

"I'm happy," Cory said. "It's kind of like closure. It's been four really long years. This feels good today. It feels right."

The guilty verdicts put the blame for the 2001 demise of the high-profile energy trader, once the nation's seventh-largest company, squarely on its top two executives. It came in the sixth day of deliberations following a trial that lasted nearly four months.

Skilling faced 28 counts of fraud, conspiracy, insider trading and lying to auditors, while Lay faced six counts of fraud and conspiracy.

Skilling, 52, was convicted of 19 of the 28 counts against him while Lay, 64, was found guilty of all counts.

In a separate, non-jury bank fraud trial, U.S. District Judge Sim Lake found Lay guilty of bank fraud and making false statements to banks related to his personal banking.

Lay's charges carry a maximum penalty of 45 years in prison for the corporate trial and 120 years in the personal banking trial. Skilling's charges carry a maximum penalty of 185 years in prison.

The two will be sentenced on Sept. 11.

Lay, Skilling Surprised By Verdicts

Lay said he was "surprised" and "shocked" by the guilty verdicts.

He told reporters that the verdicts were "not the outcome" he expected.

Lay said he still believes he's innocent of charges that he illegally covered up Enron's fractured finances before the company's collapse.

"Despite what happened today, I am still a very blessed man," said Lay. "Most of all, we believe that God, in fact, is in control and, indeed, that he does work all things for good for those who love the Lord. And we love our Lord, and ultimately, all of these things will work for good."

"This is obviously a very, very difficult time for Mr. Skilling, his children, his family. We had a trial and obviously it did not come out the way we hoped. It does not change our view of what happened at Enron and certainly doesn't change our view of Jeff Skilling's innocence," said Dan Petrocelli, Skilling's attorney. "We've just begun the fight."

A reporter asked Skilling if he would ever admit to himself that he might have committed crimes.

"No, because I didn't," he replied. "Obviously, I'm disappointed but that's the way the system works."

Jurors: Trial Took Its Toll

Jurors said the four-month trial, which began on Jan. 30, took an emotional and financial toll.

"I think fatigue took a big role in what we went through," said a juror who owns her own business.

The panel said they liked and admired Lay and Skilling, but the facts and evidence made their job easy.

"When (Lay) spoke, he kind of commanded the room when he answered questions," juror Wendy Vaughan said. "He just seemed very focused, a little of a chip on his shoulder. I think it made me question his character at that point, how controlling he might be."

"In all honestly, in the very beginning of the trial I admired both men," Vaughan said. I thought they were brilliant. I think they had a lot of talent and they probably, for the most of their career, did a lot of good. It was sad to see that, in the end, it wasn't accomplished in a respectful manner, having to hurt so many people to get there."

Jurors were asked if they factored in all of the lives affected by the Enron collapse or the philanthropic nature of Lay in the past.

"There was no emotion in reaching this verdict. We only looked at the facts," jury forewoman Debra Smith said. "No one is above the law."

Jurors said there was not one single piece of evidence that was a deciding factor, but rather the totality of it.

"We're confident in our decision. It was a very difficult thing, but I do feel that justice prevailed," an unidentified juror said.

Juror Doug Baggett, a legal department manager, said the panel felt like a ping-pong ball, swaying from the prosecution to the defense, until the final vote was taken.

The panel formed a bond through the lengthy trial.

Juror Freddy Delgado is an elementary school principal.

"We've been together for four months," Delgado said. "We’ve cried together. We've laughed together. We really became more than just friends. I believe we are a family. We've supported each other with all the different things that happened within our lives in these four months."

"Financially, it was extremely difficult," said alternate juror Amanda Perry, a 23-year-old single mother. "I would do it all again because I learned so much."

Prosecutors Say Verdicts Send Message

Prosecutor John Hueston said the conviction of Lay and Skilling should send a powerful message to corporate executives that they cannot "hide behind" accountants, lawyers and "claims of ignorance."

He said people will now have confidence that prosecutors can go after fraud, "even at the highest level."

Fellow prosecutor Sean Berkowitz said corporate boardrooms are being put on notice. "You can't lie to shareholders. You can't put yourselves in front of your employees' interests," said Berkowitz.

The conviction was a major win for the government, serving almost as a bookend in an era that has seen prosecutors win convictions against executives from WorldCom Inc. to Adelphia Communications Corp. and homemaking maven Martha Stewart.