Skilling Faces Possible Court Action after Night Out in New York

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Apparently being drunk and disorderly in the city is not the way to gain favor with prosecutors. That's what former Enron Corp. chief executive Jeffrey K. Skilling is finding out as more details of a bad night out in New York come to light.

On Tuesday, prosecutors told the federal judge overseeing Skilling's case that he broke several of the terms attached to his release on $5 million bond by "drinking inordinately," allegedly attempting to remove a car license plate, and getting into a physical altercation with patrons at a Manhattan bar on April 9, which eventually involved Skilling being held temporarily in police custody, the Washington Post reported.

"Bail is an issue of trust between the defendant, the Court, and the Court's Pretrial Services office," Enron Task Force prosecutors wrote. "Skilling has shown that he is incapable of following the Court's Order of release and he has dissembled -- even after he was sober -- regarding his conduct." Skilling also failed to notify court officials of his contact with the police for several hours, the court papers said.

The prosecutors are asking the court to hold a hearing in the matter and it is possible that U.S. District Judge Sim Lake, known to be a by-the-book judge, could revoke Skilling's bail or order him jailed on contempt of court, the Post reported.

Next year, Skilling is due to go to trial on nearly three dozen counts of fraud, conspiracy and insider trading, all involving the 2001 collapse of Enron, which was the seventh largest U.S. corporation. He has pleaded not guilty and plans to mount a vigorous defense, the Post reported.

"Obviously Mr. Skilling regrets the episode and wishes it never happened," Daniel M. Petrocelli, his lead defense lawyer, told the Post. "But it certainly did happen as reported in the Task Force motion. What I find most disturbing is, it was not necessary for the Task Force to have filed this motion. It only reinforces the view that the government appears more committed to prejudicing my client than ensuring him a fair trial."


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