Supreme Court Will Hear Appeal of Enron's Skilling

FILE - In this May 25, 2006 file photo, former Enron executive Jeff Skilling leaves the courthouse...

FILE - In this May 25, 2006 file photo, former Enron executive Jeff Skilling leaves the courthouse after the verdict in his fraud and conspiracy trial in Houston.The U.S. Supreme Court said Monday, Oct. 12, 2009, it will consider throwing out the convictions of former Enron Chief Executive Officer Jeff Skilling for his role in the collapse of the one-time energy giant.(AP Photo/Pat Sullivan, File)

(AP)

The Supreme Court said Tuesday it will take up former Enron CEO Jeff Skilling's appeal of his convictions for his role in the collapse of the energy giant, accepting another high-profile challenge to a favorite tool of prosecutors in white-collar and public corruption cases.

Skilling's appeal stems from his convictions in 2006 on 19 counts of conspiracy, securities fraud, insider trading and lying to auditors involving the 2001 collapse of Enron.

The justices already are entertaining similar claims from former newspaper magnate Conrad Black and a former Alaska lawmaker ensnared in a public corruption scandal.

At issue in all three cases is prosecutors' use of the federal "honest services" fraud statute, a 28-word law that critics call vague and unfair. Among the federal charges against former Illinois Gov. Rod Blagojevich is an "honest services" count, while his predecessor, former Gov. George Ryan was convicted of it.

The law makes it a crime to deprive shareholders or the public of "the intangible right to honest services."

Skilling, serving a 24-year prison term, says he was improperly convicted under the law. He says prosecutors did not show that he personally benefited from his allegedly fraudulent actions.

He also is claiming that he did not receive a fair trial in Houston following Enron's collapse, describing "blistering daily attacks" in the media. "Skilling was pronounced guilty throughout Houston long before trial," his lawyer, Daniel Petrocelli, said in his court filing.

A ruling in his favor on the fair trial claim probably would result in a new trial. The effect of the ruling on honest services is unclear since Skilling was convicted on other charges as well, including securities fraud.

"We are so relieved," Petrocelli told The Associated Press Tuesday "We've been waiting almost three years now since Jeff was convicted. You know, the stain of the Enron story has been hard to overcome. And the Supreme Court has decided it's going to give us a full, frank and fair hearing."