Enron Execs Go Down. Former Worker Says, ‘I’m Thrilled’

by James Parks, May 25, 2006

Enron founder Kenneth Lay was convicted today of all six counts against him, including conspiracy to commit securities and wire fraud. Former Enron Chief Executive Jeffrey Skilling also was convicted of conspiracy to commit securities and wire fraud.

“I am thrilled, absolutely thrilled! This finally settles things,” shouted Debbie Perrotta on hearing the verdict. Perrotta, along with 21,000 of her co-workers, lost everything when Houston-based Enron went belly-up five years ago in a maze of bogus offshore companies, outright lies and fraud.

“I was afraid that…they would be acquitted. But I’m so happy,” says Perrotta, who now lives in Dallas and is working for the Texas Federation of Teachers. “This just shows corporations can’t lie and deceive you and the public and get away with it.”

Perrotta says she feels vindicated that Lay and Skilling were convicted. “I know they will probably appeal. But let them use all their money on lawyers. I’m so glad the jury didn’t believe them. They were so sure of themselves on the stand.”

During the nearly four-month trial, Lay and Skilling claimed there were no crimes at Enron and blamed investor loss of confidence and media reports for the company’s downfall, according to news reports.

Perrotta has no sympathy for Lay’s reported financial problems. Lay said he made more than $100 million in cash and stock gains in 2000. Since Enron collapsed, Lay said he and his wife sold three houses in Galveston, Texas, and three in Aspen, Colo. Lay, whose defense has cost nearly $23 million, said he now is worth negative $250,000—and still owes $7.5 million to Enron for money he borrowed from a corporate revolving credit account.

“I don’t feel sorry for him at all,” says Perrotta, who was unable to make mortgage payments after she lost her job at the same time her husband lost his.

She says the Enron disaster bears an important lesson for workers.  “I want to tell workers that you have to watch out for yourself and fight for your rights.”

AFL-CIO President John Sweeney said, “The collapse of Enron exposed the culture of greed that permeates corporate America, often in wanton disregard of workers’ and investors’ rights and interests.”

Here is the rest of what Sweeney said in a statement:

While top Enron executives and insiders made fortunes, workers lost their jobs, their health care and their lifetime savings for retirement. The Enron bankruptcy exposed major vulnerabilities in working families’ retirement security and the dangers of privatizing Social Security. Enron also showed the fundamental flaws in CEO pay and how executive stock options can create a strong incentive to fraudulently manipulate company stock prices.

Today’s conviction of Chairman Kenneth Lay and CEO Jeffrey Skilling shows that executives cannot lie their way out of the mess that they created. However, it must be remembered that the collapse of Enron did irreparable harm to working people, and no amount of jail time can fix that.

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