Last year, on their second attempt, federal prosecutors secured convictions against former Enron Broadband Services CFO Kevin Howard. Yesterday, those convictions were dismissed.
A theory used by prosecutors and an instruction to jurors regarding deliberations prompted U.S. District Judge Vanessa Gilmore to issue a ruling Wednesday that erased five convictions of conspiracy, wire fraud and falsifying books against Kevin Howard, former finance chief of Enron’s broadband division.
Howard was convicted of those crimes after facing a jury for the second time last year. His co-defendant, former broadband accountant Michael Krautz, was acquitted of the same counts.
Their first trial alongside three other ex-broadband executives ended in 2005 with no convictions, a few acquittals and jurors hung on dozens of other counts.
Howard’s attorney, Jim Lavine, said his client was “very humbled and very grateful” at Gilmore’s ruling.
“It has been a long road for him and very hard, but he has incredible support from his family and friends,” Lavine said. “He has always believed the right thing would happen eventually.”
The government retains the right to try Howard a third time. Justice Department spokesman Bryan Sierra said prosecutors were reviewing their options.
The government conceded last November that four of Howard’s five convictions should be tossed aside because they likely would not stand up on appeal. But prosecutors argued that the fifth count stood apart from the others and should be upheld.
Howard’s lawyers responded that the prosecution’s theory tainted all five counts.
Third time’s the charm? Color me skeptical. For more, read Tom, who saw this coming.