1. Sentencing Ken Lay & Jeffrey Skilling © Frank Bowman University of Missouri-Columbia School of Law bowmanf@missouri.edu

2. Jeffrey Skilling U.S.S.G. Section 2B1.1 2B1.1(a): Base Offense Level --+6 2B1.1(a): Base Offense Level --+6 2B1.1(b)(1)(N): Loss 2B1.1(b)(1)(N): Loss What IS the “loss” here? What IS the “loss” here? “Loss” is “the reasonably foreseeable pecuniary harm that resulted from the offense” “Loss” is “the reasonably foreseeable pecuniary harm that resulted from the offense” How do we quantify that in Skilling’s case? How do we quantify that in Skilling’s case? A question to be determined by Judge Lake A question to be determined by Judge Lake

3. Jeffrey Skilling U.S.S.G. Section 2B1.1 2B1.1(a): Base Offense Level --+6 2B1.1(a): Base Offense Level --+6 2B1.1(b)(1)(N): Loss 2B1.1(b)(1)(N): Loss May be more than $100 million+ 26 May be more than $100 million+ 26 2B1.1(b)(2)(B): >50 victims -- +2 2B1.1(b)(2)(B): >50 victims -- +2 2B1.1(b)(8): Sophisticated means --+2 2B1.1(b)(8): Sophisticated means --+2 2B1.1(b)(12)(A): > $1 million receipts+2 2B1.1(b)(12)(A): > $1 million receipts+2 TOTAL from 2B1.1:38

4. Jeffrey Skilling, cont. TOTAL from 2B1.1:38 U.S.S.G. Chapter 3 3B1.1(a) Aggravating role+4 3B1.1(a) Aggravating role+4 3B1.3 Abuse of trust+2 3B1.3 Abuse of trust+2 TOTAL OFFENSE LEVEL44 CRIMINAL HISTORY CATEGORY = I

5. Jeffrey Skilling LIFE

6. Kenneth Lay U.S.S.G. Section 2B1.1 2B1.1(a): Base Offense Level --+6 2B1.1(a): Base Offense Level --+6 2B1.1(b)(1)(N): Loss 2B1.1(b)(1)(N): Loss May be more than $100 million+ 26 May be more than $100 million+ 26 2B1.1(b)(2)(B): >50 victims -- +2 2B1.1(b)(2)(B): >50 victims -- +2 2B1.1(b)(8): Sophisticated means --+2 2B1.1(b)(8): Sophisticated means --+2 2B1.1(b)(12)(A): > $1 million receipts+2 2B1.1(b)(12)(A): > $1 million receipts+2 TOTAL from 2B1.1:38

7. Kenneth Lay, cont. TOTAL from 2B1.1:38 U.S.S.G. Chapter 3 3B1.1(a) Aggravating role+4 3B1.1(a) Aggravating role+4 3B1.3 Abuse of trust+2 3B1.3 Abuse of trust+2 TOTAL OFFENSE LEVEL44 CRIMINAL HISTORY CATEGORY = I

8. Kenneth Lay LIFE

9. Andrew Fastow (if he’d gone to trial) U.S.S.G. Section 2B1.1 2B1.1(a): Base Offense Level --+6 2B1.1(a): Base Offense Level --+6 2B1.1(b)(1)(N): Loss 2B1.1(b)(1)(N): Loss More than $100 million+ 26 More than $100 million+ 26 2B1.1(b)(2)(B): >50 victims -- +2 2B1.1(b)(2)(B): >50 victims -- +2 2B1.1(b)(8): Sophisticated means --+2 2B1.1(b)(8): Sophisticated means --+2 2B1.1(b)(12)(A): > $1 million receipts+2 2B1.1(b)(12)(A): > $1 million receipts+2 What about 2B1.1(b)(12)(B)? [+4?] What about 2B1.1(b)(12)(B)? [+4?] TOTAL from 2B1.1:38

10. Andrew Fastow, cont. TOTAL from 2B1.1:38 U.S.S.G. Chapter 3 3B1.1(a) Aggravating role+4 3B1.1(a) Aggravating role+4 3B1.3 Abuse of trust+2 3B1.3 Abuse of trust+2 TOTAL OFFENSE LEVEL44 CRIMINAL HISTORY CATEGORY = I

11. Andrew Fastow LIFE (but …)

12. Only suckers pay the sticker price 10 years, less possible substantial assistance departure, less 15% Out in, say, 2010