Enron Broadband CEO sentenced to 27 months in plea deal

[JURIST] Former Enron [corporate website; JURIST news archive] broadband division chief Kenneth Rice was sentenced to 27 months in prison [DOJ press release] Monday and ordered to forfeit almost $15 million as part of a plea deal with prosecutors for his testimony against former Enron CEO Jeffrey Skilling and company founder Kenneth Lay [Houston Chronicle profiles]. As CEO of Enron Broadband Services (EBS) [JURIST news archive], Rice made numerous false statements about technology developments designed to mislead investors and artificially inflate the company's stock price. Without the plea deal, Rice faced up to 10 years in prison for his actions.

Earlier this month, former EBS Chief Operating Officer Kevin Hannon was sentenced to two years in prison [JURIST report] and fined $125,000 for defrauding investors. Hannon also was sentenced subject to a plea deal, but was convicted of lesser crimes and was facing a maximum of 5 years in prison. AP has more. The Houston Chronicle has additional coverage.

 

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