Joseph Hirko, the former CEO of Enron's internet division, has been sentenced to 16 months in prison for his role in what was at the time the largest securities fraud case in United States history.Mr. Hirko pleaded guilty to one count of wire fraud as part of a plea bargain. He apologized for his crimes before being sentenced. He will also pay $8.7 million in restitution. According to the New York Times, "Mr. Hirko, who now owns a business that rents tables, chairs and other equipment for parties and other events, will remain free on bond until he reports to prison in the next few months."
Will the owner of a party rental business be able to satisfy an $8.7 million judgment? Who knows.
Hirko is just now being sentenced for his role in a crime that took place in the year 2000 -- the result of a hung jury in a 2005 trial and the generally slow pace of the legal process. But what's interesting about the case is that it shows how much time can elapse between a white collar crime and the sentencing of the conspirators. The complexity of these cases often means that it takes prosecutors years to build good enough cases to press charges.
So here's an interesting question to ponder: What executives involved in the financial crisis will end up in jail -- even if they're still currently in power? My bet? With an FBI investigation reportedly looming, Bank of America (NYSE: BAC) CEO Ken Lewis is the corporate titan most likely to face criminal charges.
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Reader Comments (Page 1 of 1)
9-29-2009 @ 11:09AM
Bret said...
Wow. 16 months. I'll do 16 months in prison for a billion dollars.
9-30-2009 @ 9:49PM
Allen said...
It certainally dosen't seem to fit the crime dose it. 20 years would have been more like it. We'll have to see what they give the BofA officals when all is said and done.
Looks like Madoff is going to have a lot of company.........