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Former Enron CEO gets 27-month sentence

Rice apologised for his role in the corporate scandal that wiped out thousands of jobs, more than USD 60 billion in market value

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HOUSTON: One of the key prosecution witnesses whose testimony helped convict former Enron CEO Jeffrey Skilling and company founder Kenneth Lay was sentenced to 27 months in prison.

It has been nearly three years since Kenneth Rice, 48, the former chief of Enron Corp's high-speed Internet unit, pleaded guilty to securities fraud and agreed to help federal prosecutors on other cases related to the energy giant's collapse. His sentencing was postponed as he cooperated with prosecutors.

Rice becomes the ninth ex-Enron executive to receive a jail term after pleading guilty to crimes.

Before sentencing on Monday, Rice apologised for his role in the corporate scandal that wiped out thousands of jobs, more than USD 60 billion in market value and more than USD 2 billion in pension plans.

"I'm sorry. I wasn't raised that way and I'm ashamed of that," he said, his voice breaking with emotion. "I'm committed to turning my life around."

Rice, who also was fined USD 50,000 was allowed to remain free on bond until the Bureau of Prisons determines where he will do time. More than a dozen family members and friends from across the country attended the sentencing before US District Judge Vanessa Gilmore, including his mother, brother and ex-wife. Some wept and embraced after the proceeding.

Assistant US Attorney Ben Campbell said he was satisfied with the sentence. He had noted to the court Rice's "candid testimony" in the trial of Skilling and Lay, who were convicted last year for their roles in the company's collapse.

 

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