Sunday, June 17, 2007

Former Enron Broadband CEO Given 27 Month Jail Sentence

Kenneth Rice, a former chief executive officer of Enron Broadband Services (EBS), was sentenced to 27 months in prison and ordered to forfeit approximately $15 million to be used to compensate victims of the Enron fraud.

In 2004, Rice pleaded guilty to the securities fraud charge, and cooperated with the government's investigation into the collapse of Enron. He admitted that while he was at EBS, a unit of the now-defunct Enron Corp., he and others made a series of false statements about the products, services and business performance of EBS in order to mislead investors and others about the success of the company and to inflate artificially the price of Enron stock.

Kevin Hannon, the former chief operating officer of EBS, was sentenced earlier this month to two years in prison, and fined $125,000.

The U.S. Department of Justice noted that criminal charges have been brought against 36 defendants in the Enron case, including 25 former Enron employees. Eighteen of those defendants have pleaded guilty or been found guilty after trial.

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