Monday, December 5, 2005

Olis Resentencing Set for Jan. 5

The resentencing of former Dynegy Inc. executive Jamie Olis will take place on Jan. 5, along with new proceedings for his former bosses, Helen Sharkey and Gene Foster, who entered guilty pleas and testified against Olis.  The Fifth Circuit upheld Olis' conviction but remanded for resentencing because it found that the district court did not properly calculate the loss when it determined that the underlying fraudulent conduct was the sole cause of a drop in Dynegy's stock price when the accounting problems were revealed without factoring in other potential causes of the decline.  Based on the improperly high loss figure, Olis received a 24 year sentence, which would have meant serving over 20 years in prison.  U.S. District Judge Sim Lake denied a request by Olis to be released pending the resentencing, and the judge asserted at a hearing that Olis "has a number of years to serve even under the most liberal interpretation of laws," which indicates that the court is likely to find that the accounting fraud caused a significant loss.  A Houston Chronicle story (here) discusses the Olis resentencing hearing. (ph)

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