The former COO of Enron Corp.'s Internet division, Enron Broadband Services (EBS), was sentenced in Houston Monday to two years in federal prison.

Kevin Hannon, 46, also was fined $125,000 by U.S. District Judge Vanessa Gilmore. He had faced up to five years in prison.

Hannon was COO of EBS from January 2000 to June 2001, and he resigned from Enron in September 2001. He also had served as president of Enron's trading and commodities business. Hannon was indicted in 2003 (see Daily GPI, May 2, 2003), and he eventually pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud, making a deal to cooperate in exchange for a reduced sentence (see Daily GPI, Sept. 1, 2004). At the time of his plea, Hannon agreed to forfeit $2.2 million and pay $1 million to settle U.S. Securities and Exchange Commission civil charges.

The former executive was considered a key witness in the trial last year of his former bosses, Enron founder Kenneth Lay and ex-CEO Jeffrey Skilling (see Daily GPI, March 7, 2006; March 3, 2006).

©Copyright 2007 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.