The Houston Chronicle reports today that the Enron Task Force is close to indicting Jeff Skilling, the former CEO of Enron, possibly as early as next week. The recent plea bargain of former Enron CFO and Skilling protege Andrew Fastow, noted in this earlier post, probably means that the Government is using Mr. Fastow as a prime source and eventual witness in its case against Mr. Skilling.
Despite the public perception that a conviction in a criminal case against Mr. Skilling is the legal equivalent of a gimme, I’m not buying it. For all its well-publicized excesses and arrogance, Enron spent multi-millions each year on outside legal and accounting analysis and review of its various deals and public disclosures. You can bet that Mr. Skilling’s capable defense lawyer–Bruce Hiler of Washington, D.C.–will point repeatedly to Mr. Skilling’s disclosure to and reliance on Enron’s accountants–Arthur Andersen–and its top notch law firms–Vinson & Elkins, among many others–in defending against any allegation of criminal intent in his conduct of Enron’s affairs.