Lying

Joseph Hirko, the former CEO of Enron Corp.’s failed broadband business, has been sentenced to 16 months in prison for lying to investors to boost the former company’s stock price. Hirko, who was first indicted in 2003, also agreed to pay $8.7 million in restitution (see Daily GPI, May 2, 2003). Hirko was one of five former Enron Broadband Services executives who were first tried in 2005; their trial ended in a hung jury. Hirko had previously pleaded guilty to one count of wire fraud as part of a plea agreement with federal prosecutors. Before he was sentenced in Houston by U.S. District Judge Vanessa Gilmore, Hirko apologized for his actions. “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.”

Jury selection began Monday in the upcoming trial of five former Enron Corp. executives who are accused of lying to make the company’s fledgling broadband business appear successful. The former Enron Broadband Systems (EBS) employees face 170 counts of conspiracy, wire and securities fraud, insider trading and money laundering.

Two Enron executives, Kevin Howard and Michael Krautz, were arrested Wednesday on charges of securities fraud, wire fraud, conspiracy and lying to FBI agents about a fraudulent scheme involving a video on-demand contract between Enron and Blockbuster, the retail video store chain.

In his second appearance on Capitol Hill, a more confident, almost brash Jeffrey K. Skilling denied that he lied to Congress last month or ever misled long-time Enron Chairman Kenneth Lay about the controversial off-the-book partnerships that prompted the devastating collapse of the energy trading company last year. But lawmakers in the end were far from convinced.

Former Enron CEO Jeffrey K. Skilling denied Tuesday that he lied before Congress earlier this month or ever misled long-time Chairman Kenneth Lay about the controversial off-the-book partnerships that prompted the devastating collapse of the energy trading company last year.

Senate Energy Committee Chairman Frank Murkowski (R-AK) onFriday asked President Clinton to delay swearing in Bill Richardsonto head the Department of Energy until the committee has had anopportunity to review allegations that he may have lied during hisconfirmation hearing about a job offer that was made to MonicaLewinsky.