ATLANTA, May 17, 2006 (PRIMEZONE) -- The upcoming verdict in the Enron trial promises to have historic consequences, regardless of the result, says an Atlanta securities lawyer experienced in both criminal and civil fraud matters.
"This is really the big enchilada; it's a defining moment for the federal government's crackdown on corporate crime," says Ross Albert, who served as both a Senior Special Counsel with the Division of Enforcement of the U.S. Securities and Exchange Commission and a Special Assistant U.S. Attorney with the U.S. Department of Justice. Albert was a member of the government team that prosecuted reportedly the largest securities fraud case in the history of Georgia, one in which 12 defendants were convicted or pled guilty. Albert is now a Partner at Morris, Manning & Martin, LLP.
Enron founder and former Chairman and CEO Kenneth Lay; and former CEO and President Jeffrey Skilling have been on trial in federal court in Houston for three and a half months. The case goes to the jury this week.
"In terms of resources, time spent on the investigation and the number of attorneys involved, the Enron case has no counterpart among white-collar securities prosecutions," he says. "Most defendants cannot come close to matching the resources available to the federal government, but Lay and Skilling have each spent over $30 million on legal fees, according to news reports. Thus, the trial truly lived up to its advance billing as an epic battle between formidable and evenly-matched foes, 'King Kong vs. Godzilla,' if you will."
The Enron case was the first of many major financial scandals to break, but the latest to go to trial, Albert says, due to its mind-boggling complexity. Enron's collapse was a major catalyst behind the passage of the Sarbanes-Oxley Act of 2002; comprehensive federal legislation aimed at deterring and defeating corporate corruption.
Albert's prediction that the trial would be an endurance test for jurors has proven to be true. In assessing the more than three months of testimony, Albert observed: "It seems that the prosecution has achieved one of its major goals going into the trial -- simplification of the issues. As the evidence was presented, the government consistently stuck to its theme that the case centered around the fraud and lies allegedly committed by Lay and Skilling, not debatable, hypertechnical accounting procedures. No major surprises occurred during the trial, something that usually favors the government."
In conclusion, Albert stated that: "Although juries can be notoriously unpredictable -- the acquittal of Richard Scrushy, the former CEO of HealthSouth being just one example -- the prosecution team is probably feeling confident about its chances going into jury deliberations, justifiably so, in my view."
Morris, Manning & Martin, LLP, (www.mmmlaw.com) enjoys national prominence for its corporate finance, securities, litigation, technology, telecommunications, insurance, healthcare, environmental and real estate practices. The firm has offices in Atlanta, Washington, D.C., Charlotte, Raleigh-Durham and Princeton.