Ex-Dynegy Exec Gets 24 Years for Fraud

[Sun Baked]

Ex-Dynegy Exec Gets 24 Years for Fraud

By C. Bryson Hull

HOUSTON (Reuters) - A federal judge on Thursday sentenced former Dynegy Inc. <DYN.N> tax executive Jamie Olis to 24 years in prison for his role in an Enron-style scheme to burnish the company's finances by disguising a $300 million debt.

The 38-year-old lawyer and accountant was convicted in a November trial of six counts of criminal conspiracy and securities, wire and mail fraud for his role in the complicated 2001 financial transaction dubbed "Project Alpha." U.S. District Judge Sim Lake also fined Olis $25,000.

Lake, who presided over Olis' trial, said he took no pleasure following the federal laws that dictated such a stiff sentence for a first-time white collar offender.

"Sometimes good people commit bad acts, and that is what happened in this case," Lake told Olis. He permitted Olis to remain free on bond and turn himself in to prison.

The judge said he was required to give Olis a sentence of between 24 and 30 years, five years shy of the maximum, based on the massive losses Dynegy shareholders suffered as a result of Project Alpha's repercussions...

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[wdlove]

Maybe this type of sentence will start to wake up corporate America. To realize that this type of thing will not be tolerated. I'm sure that he must have taken some ethics courses in college. So it seems to me that he realized, what he did was wrong.

 

[Sun Baked]

Maybe this type of sentence will start to wake up corporate America. To realize that this type of thing will not be tolerated. I'm sure that he must have taken some ethics courses in college. So it seems to me that he realized, what he did was wrong.

Do a search on "Judge Sim Lake AND Enron" and you'll see this judges name there quite a bit.

This should definitely serve as a wake-up call to the lawyers defending Skilling, Causey, and Fastow in the Enron debacle.

 

[jsw]

Maybe this type of sentence will start to wake up corporate America. To realize that this type of thing will not be tolerated. I'm sure that he must have taken some ethics courses in college. So it seems to me that he realized, what he did was wrong.

I agree that it shouldn't be tolerated. I think, though, that it's also wrong to make an "example" of someone. 24 years seems like a waste of someone's life. Yes, what he did was bad, but I don't think he had a reasonable expectation of the punishment that was possible, nor of the harm he was actually doing.

I'd rather see successively stiffer fines and terms so as to raise awareness of the wrongness and possible punishments for doing such things, as opposed to passing some new law and then throwing the book at someone who violates it before most people even knew the law existed.

I'm not defending the guy - he was wrong. Maybe he was maliciously wrong. But it's just as likely he got caught up in the "game" and didn't fully think through the human impact of his decisions.

Again, he was wrong. He should not have done what he did. He should be punished. But, does sending this guy to prison for 24 years help society? Doubtful. Restitution, pro bono work, etc. seems like a better way to go.

 

[madoka]

I agree that it shouldn't be tolerated. I think, though, that it's also wrong to make an "example" of someone. 24 years seems like a waste of someone's life. Yes, what he did was bad, but I don't think he had a reasonable expectation of the punishment that was possible, nor of the harm he was actually doing.

Well, there were Federal laws that mandated this sentence, so it's not like this came as a complete shock to a lawyer/accountant.

Second, I disagree with your overall point. I think these guys deserve such punishment. Stealing perhaps the savings of hundreds or thousands of people ruins more lives than an army of muggers and burglars ever could. When you get mugged, you lose what you have on you. When someone cheats/steals your life savings you could lose your house, face the possibility of living out your retirement on welfare, etc. This is significantly more devastating in the long run.

 

[jsw]

I think these guys deserve such punishment.

Oh, I totally agree he needs to be punished.

I just think that prison won't allow him to help anyone. Extensive parolled community service doing what he's trained at (accounting or law, not book cooking) would serve the community more. Day-release or whatever. Keep him in prison at night if need be. Just make him do some good.

 

[Sun Baked]

Thinking back, Enron was the reason they rewrote the Federal White Collar Crime Sentencing Guidelines -- so they'll probably end up with 10 years or less.

This guy was indicted on the "day" the Emergency Guidelines for Sentencing went into effect, the Sarbanes-Oxley Act may enhance this type of punishment.

 

[jsw]

Thinking back, Enron was the reason they rewrote the Federal White Collar Crime Sentencing Guidelines -- so they'll probably end up with 10 years or less.

This guy was indicted on the "day" the Emergency Guidelines for Sentencing went into effect, the Sarbanes-Oxley Act may enhance this type of punishment.

Well, er, yes, um, maybe....

Dude, it's somewhat difficult to read your replies with that avator of yours.