Dynegy executive gets 24 years in prison for accounting fraud

<br>HOUSTON (AP) _ A former Dynegy Inc. executive must serve at least two decades in federal prison for accounting fraud, a sentence the judge said reflects the government's crackdown on corporate

Friday, March 26th 2004, 12:00 am

By: News On 6

HOUSTON (AP) _ A former Dynegy Inc. executive must serve at least two decades in federal prison for accounting fraud, a sentence the judge said reflects the government's crackdown on corporate corruption.

Jamie Olis, a former senior director of tax planning for the energy company, was sentenced Thursday to 24 years and four months by U.S. District Judge Sim Lake. He faced a maximum term of 35 years for three counts of wire fraud and one count each of securities fraud, conspiracy and mail fraud.

Olis, 38, could shave up to 3 1/2 years off his sentence with credit for good time. There is, however, no parole in the federal system.

``I take no pleasure in sentencing you to 292 months,'' Lake said. ``Sometimes good people commit bad acts, and that's what happened in this case.''

The punishment ``reflects Congress' intent that white-collar corporate fraud defendants receive harsh sentences,'' said Lake, who is also presiding over the criminal cases against former top Enron officials Jeffrey Skilling and Richard Causey.

That sentence emerged from sentencing guidelines revised as of November 2001 _ a month before Enron's failure led a string of corporate scandals.

Olis held back tears throughout the hearing but quietly wept after learning his sentence. He is expected to report to prison within the next month.

``I want to thank all of our longtime supporters,'' Olis told the packed gallery that included his parents, wife and 6-month-old daughter. ``It means a lot to us.''

Prosecutors and federal probation authorities asked for 24 to 30 years in prison for Olis. The defense team recommended less than a decade behind bars.

The government maintained Olis' actions in illegally disguising company debt in 2001 eventually resulted in more than $500 million in Dynegy stock losses.

Olis' attorneys contended the government cannot possibly pinpoint stock losses caused by revelations of a 2001 deal that wrongly boosted cash flow because Dynegy, like other energy companies, was besieged by months of bad news in the aftermath of Enron's collapse.

Olis was charged in June alongside two co-conspirators, his former boss, Gene Shannon Foster, and a former company accountant, Helen Christine Sharkey. Foster and Sharkey each pleaded guilty to one count of conspiracy in August, and Foster testified against Olis in his November trial.

Foster and Sharkey each face up to five years in prison, but both are cooperating with prosecutors and probably will receive lesser sentences.