Enron execs convicted of fraud and conspiracy

HOUSTON (AP) ? Kenneth Lay and Jeffrey Skilling were convicted of conspiracy and fraud Thursday by a federal jury that laid blame for one of the biggest business scandals in U.S. history squarely on Enron Corp.’s two former top executives.

Jurors found that the men, who received tens of millions in pay and stock options, repeatedly lied to cover up accounting tricks and business failures that led to the company’s 2001 demise. The collapse wiped out more than $60 billion in market value, almost $2.1 billion in pension plans and 5,600 jobs.

The verdict came in the sixth day of deliberations following a criminal trial that lasted nearly four months. Lay was also convicted of bank fraud and making false statements to banks in a separate, non-jury trial before U.S. District Judge Sim Lake related to Lay’s personal finances.

The conspiracy conviction was a major win for the government, serving almost as a bookend to an era that has seen prosecutors win convictions against executives from WorldCom Inc. to Adelphia Communications Corp. and homemaking maven Martha Stewart.

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WASHINGTON (AP) ? The economy showed even more pep than initially thought in the first quarter, zipping ahead at a 5.3 percent pace. But a less energetic housing market and high energy prices are now taking out some of the oomph.

The figure released by the Commerce Department Thursday showed gross domestic product during the January-to-March quarter surpassing the 4.8 percent annual rate estimated a month ago. It marked the strongest growth spurt in 2 1/2 years. The upgrade mostly reflected stronger U.S. exports and better inventory building by businesses.

GDP, which measures the value of all goods and services produced within the United States, totaled $11.39 trillion in the first quarter when annualized and adjusted for inflation.