|  | | 2009 News and Press Releases | | |
HEADLINE NEWS:
Former Enron Exec Sentenced To 16 Months In Prison
Kevin LaCroix
The Associated Press. September 29, 2009
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EXCERPT: The former chief executive of Enron Corp.'s failed Internet business was sentenced Monday to 16 months in prison for lying about the capabilities of the once mighty energy giant's broadband network in order to help pump up the company's stock price. The former broadband unit CEO also agreed to pay $8.7 million in restitution.
Joseph Hirko apologized for his actions before being sentenced. He had previously pleaded guilty to one count of wire fraud as part of a plea deal with federal prosecutors.
"I've always tried to be an example for my kids, to show them by my actions to do right. I can't do that anymore. The best I can do is stand here before you and accept responsibility for my actions," Hirko said before he was sentenced by U.S. District Judge Vanessa Gilmore as his three adult children and his wife sat in the Houston courtroom.
Hirko's attorney, Per Ramfjord, had asked for a sentence of a year and a day, telling Gilmore his client was not as culpable as other Enron broadband executives who were charged in the case and that there was no way to calculate the loss caused to investors by what happened in the broadband unit. Prosecutor Jonathan Lopez disagreed, saying there was investor loss. A presentence report calculated that figure at $80 million. But Lopez said prosecutors are standing behind the plea deal because Hirko has cooperated with prosecutors and he was less culpable than others. The plea deal recommended a sentence of between 12 months and 16 months. Gilmore said she would accept the plea deal even though sentencing guidelines called for a sentence of up to five years because of the amount of investor loss. |
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