Enron CEO Ken Lay and President Jeff Skilling Guilty - CNN

Lay and Skilling's day of reckoning
Enron ex-CEO and founder convicted on fraud and conspiracy charges; sentencing slated for September.

By Shaheen Pasha and Jessica Seid, CNNMoney.com staff writers

May 25, 2006: 3:49 PM EDT

HOUSTON (CNNMoney.com) - Enron former chief executive Jeffrey Skilling and founder Kenneth Lay were both found guilty Thursday of conspiracy and fraud in the granddaddy of all corporate fraud cases.

On the sixth day of deliberations, a jury of eight women and four men convicted the former executives of misleading the public about the true financial health of Enron, whose collapse in late 2001 symbolized the wave of corporate fraud that swept the United States early this decade.

Ex-Enron CEO Jeffrey Skilling walks away from reporters in Houston after a jury found him guilty of 19 counts of fraud, conspiracy, false statements and insider trading.

Skilling was found guilty on 19 counts of conspiracy, fraud, false statements and insider trading. He was found not guilty on nine counts of insider trading.

Lay was found guilty on all six counts of conspiracy and fraud. In a separate bench trial, Judge Sim Lake ruled Lay was guilty of four counts of fraud and false statements.

Both Lay and Skilling could face 20 to 30 years in prison, legal experts say. And Lay will also face an additional hefty term in prison for his conviction in the bank fraud case.

"I think absent a successful appeal, they will both die in prison," said Jamie Wareham, global chairman of litigation at the international law firm Paul Hastings. "When you're a judge that's concluded that two men have lied to you for hours and hours and hours, light sentences aren't going to flow."

Judge Lake set sentencing for the week of Sept. 11 and ordered Lay to surrender his passport and post a $5 million bond. No home confinement was ordered but homes owned by Lay and his children were used as an assurety for the $5 million bond.

Skilling's attorney, Daniel Petrocelli, told reporters outside the courthouse, "We will have a full and vigorous appeal."

"The jury saw it differently," Petrocelli said, referring to his client's maintaining his innocence. "We'll take it from here."

Wareham said the defendants don't have a large amount of appeal platforms, but he expects lawyers will try to raise the issue that both men were tried in Houston, the epicenter of Enron's implosion. Defense attorneys had attempted unsuccessfully to have the venue changed prior to the trial saying it was impossible to get a fair trial in Houston.

Jurors react

All 12 jurors and three alternates speaking to reporters after the verdict insisted that the decision was one of the hardest they had to make, given compelling arguments from both sides. But ultimately, they agreed that the evidence, corroborated by the line of witnesses presented by the prosecution, proved too strong to ignore.

"This is undoubtedly the most difficult, heart-wrenching experience I've ever had in my life," said Kathy Harris, an elementary school teacher who served on the jury. "I performed my duty as an American citizen. I've never fought on a foreign battleground (but) I fought on this battleground for American justice."

Jurors said of the 22 witnesses for the prosecution, the first witness, Mark Koenig - who served as Enron's head of investor relations - and Ben Glisan, the former treasurer of Enron who is the only executive currently serving time in jail, were the most persuasive given their knowledge of details at the company.

But Andrew Fastow, Enron's former financial chief who was long considered to be a star witness for the prosecution, was less effective, jurors said.

"Fastow was Fastow," said Donald Martin, an electrical designer who served on the jury. "We knew where he was coming from."

The defense has long contended that Fastow's treachery brought down the company and he cut a deal with the prosecution, requiring him to testify against his former bosses, to receive a lighter sentence.

Wendy Vaughn, a juror who owns two businesses, said that from the beginning she admired both Lay and Skilling's brilliance and talent as businessmen building up Enron. But she said "it was sad to see in the end, it wasn't accomplished in a respectful manner."

She added that Lay's demeanor on the stand ultimately worked against him.

"He seemed very much wanting to be in control," she said. "He seemed to have very much of a chip on his shoulder... it made me question his character."

And the jurors said both men seemed to be hands-on executives, making their testimony that they relied on the advice of others questionable.

"Both said they had their hands on the wheel," said Freddy Delgado, an elementary school principal. "I can't say I don't know what my teachers are doing. To say that they didn't know what was going (on, it) wasn't right they said that."

Delgado added that the jury pored through the facts and he didn't believe anyone could question the fairness of the Houston jury.

"Houston should be proud," he said.

Tears in the courthouse
Skilling stood stone-faced as he was convicted on most of the counts he faced. Skilling's wife and children were notably absent.

Petrocelli had his hand on his client's shoulder, bracing him.

As Lay's verdict was read, his daughter Elizabeth Vittore, who has been one of his attorneys during the case, began to sob uncontrollably. His wife, Linda, clutching his hand, wiped tears away silently. All of his children sat in the front row with other members of the family. One of his sons put his face in his hands and wept.

Lay clutched his wife's hand and looked straight ahead.

Outside the courtroom after court was adjourned, Skilling said, "We fought a good fight. Some things work. Some things don't."

"Obviously I'm disappointed, but that's the way the system works," he added.

A huge scandal

The verdict is a major victory for the government, and marks the end of one of the most scandalous chapters in the history of corporate America.

The Enron government task force exited the courthouse at 2 p.m. ET and was greeted with applause. In a statement to the press, lead government prosecutor Sean Berkowitz said, "The eyes of the world have been on this courthouse and they have seen the justice system at work."

"No matter how rich you are, you have to play by the rules," he added.

Berkowitz said that he was proud of everybody on his team and the personal sacrifice they had made, adding they would all "go out and get a drink."

In Washington, Department of Justice officials praised the Enron prosecutors and said the conviction will encourage the government to go after more such cases.

"Our laws will be enforced just as vigorously against corporate executives as against street criminals," said Deputy Attorney General Paul McNulty. "No one is above the law."

The White House had no comment on the verdicts except to congratulate the Justice Department for winning convictions in a "highly complex" case. Lay was a major fund-raiser for President Bush, who gave him the nickname "Kenny Boy."

"The administration has been pretty clear - there is no tolerance for corporate corruption," White House spokesman Tony Snow said.

Houston-based Enron, once one of the hottest companies on Wall Street, imploded in a matter of months after Skilling abruptly resigned as CEO in August 2001. Lay, who was chairman at the time, postponed his retirement plans to return to the helm.

Enron's collapse marked the first of the high-profile corporate scandals that rocked the nation, followed by WorldCom, Global Crossing, Adelphia and Tyco. The wave of fraud led to passage of the Sarbanes-Oxley law that tightened oversight of how American companies are audited.

After a government investigation that took 4-1/2 years, prosecutors presented evidence that Lay and Skilling orchestrated a conspiracy to artificially inflate profits, hide millions in losses and misrepresent the true nature of the company's finances.

The long-awaited trial began Jan. 31 in Houston.

Enron's bankruptcy, the biggest in U.S. history when it was filed in December 2001, cost 4,000 employees their jobs and many of them their life savings. Investors lost billions of dollars.

Over 16 weeks, the government presented 22 witnesses, including former top executives, who testified that Skilling and Lay fostered a culture that put the company's image and stock price above everything else, at any cost.

Sixteen people pleaded guilty for crimes committed at the company, and five others, including four former Merrill Lynch employees, were found guilty at trial. Eight former Enron executives testified against Lay and Skilling, their former bosses.

But it was Enron's former finance chief, Andrew Fastow, who was thought to be the star witness for the government.

Fastow, who pleaded guilty to wire and securities fraud in 2004 in exchange for an expected 10-year sentence, testified that special partnerships were created to help the company hide millions of dollars in losses.

But defense lawyers dismissed the testimony of Fastow and other witnesses, saying that not only were Lay and Skilling innocent, but that no crimes were committed at Enron, except for the shady deals that enriched Fastow.

As for those other than Fastow who testified against Lay and Skilling, defense attorneys said they were strong-armed by the government and compelled to lie on the stand out of fear for themselves and their families.

In an attempt to explain away the company's aggressive accounting and the optimistic comments executives made to Wall Street, both Skilling and Lay testified during the trial.

But that yielded decidedly mixed results.

Skilling, known for his harsh attitude, came off in a mostly positive light, though he did lose his temper on the stand. But Lay's congenial reputation took a blow as he appeared confrontational and irritable at several points during his testimony.

Charlotte Quan Passed Away - Mom's Good United Airlines Friend Introduced Me To Glide Memorial Church

When we relocated to California from Chicago, I missed the church I went to as a small boy: Park Manor. As I grew, the desire to find a spritual home grew. But I didn't want to just go to a black church. I came to believe that my experience in church should be interracial.

Mom worked at United Airlines with a very lovely woman named Charlotte Quan, who told her "Send Zennie to Glide!" And so she did and I found my home. But in seeing Charlotte on Sunday's I also found a person who had in a way become a mother to almost everyone at Gilde.

She was the new member coordinator and as such was the first person everyone would see when they joined Glide. She had a great smile and hug for everyone, and always stayed in touch with my Mom, and always asked me about her -- heck she'd ask me when I was going to get married!

The last time I saw her was last year when she had breakfast with Mom and I at the Hilton Hotel next to Gilde. Wow. It's hard to believe she's gone. I just got the call from my Mom's friend Dee. She had a heart attack.

There's a wake today and the funeral at Gilde at 11 AM Saturday.

WR Ashley Lelie May Be Traded By The Denver Broncos Before Season's End

Wow, what a waste of a 4-3 forty guy. He's one of the best young receivers in the NFL.

Broncos could look to deal unhappy Lelie before camp begins - Profootballweekly,com

Denver

WR Ashley Lelie said he has no problem playing for Mike Shanahan, nor does he hold any grudges toward the team for trading for Javon Walker, his friend and workout partner in Arizona. It’s the desire to compete for a No. 1 spot elsewhere, as opposed to serving as Denver’s No. 3 option, that has him skipping out on the team’s offseason workout program and asking for a trade.

Even if he were to return to the team, the Broncos figure there is no chance Lelie will stick around once his contract is up after this season. So, in an attempt to get something in return for a former first-round pick who has been targeted by critics for his inconsistency and lack of toughness, we’re told to expect the Broncos to shop him around in the weeks leading up to the start of training camp in late July, much as they did with CB Willie Middlebrooks, a former first-round bust who was shipped to San Francisco for DE John Engelberger last year.

"LA Raiders?" S.I.s Mike Silver Reports Ex-49ers Execs Eddie DeBartolo and Carmen Policy Working To Make This Happen; Cowboys' Jerry Jones Backs It

Sports Illustrated Senior Writer Michael Silver was good enough -- not that not doing so would have been bad -- to provide me with this email copy of his article that's in the latest Sports Illustrated. For the hard copy read, get S.I. in a store.

As to the story itself, remember, that LA and the State of California have been forming a good plan to make this happen.

Meanwhile, is Raiders CEO Amy Trask going to NFL New York?

Here's Michael Silver:

By Michael Silver for Sports Illustrated

In the eight years since Eddie DeBartolo gave up his ownership interest in the San Francisco 49ers, Niners fans have fantasized about his possible return. The once lofty franchise has foundered under the reign of DeBartolo's brother-in-law, John York, whose condescension and cost-consciousness have alienated employees and inspired the website dumpyork.com. Meanwhile DeBartolo, the anti-York, evokes images of gregarious generosity -- and success. The three-day Super Bowl reunion gala he threw for hundreds of former employees in Las Vegas in March was a reminder of happier times.


Now how's this for a surprise twist: DeBartolo and former 49ers president Carmen Policy, together again, presiding over ... the revived Los Angeles Raiders?

It would rank as the Bay Area's biggest sporting nightmare -- not to mention a seismic shift in California's football landscape. But the scenario has been broached by DeBartolo and Policy, and the NFL's desire to break back into the nation's second-largest media market could help make it a reality. Most owners are reluctant to disrupt the league's 32-team symmetry or further split up TV revenue, making an expansion team in L.A. highly unlikely. Instead, an existing franchise will probably relocate under new ownership, with the Raiders, Saints, Chargers, Vikings, Bills or even the 49ers as the leading candidates.

DeBartolo and Policy, the duo whose bold leadership helped bring five Super Bowl titles to San Francisco, have heard the rumors that Raiders boss Al Davis is in declining health. That, plus attendance problems in Oakland, are why they have Silver and Black on the brain. "Carmen and I have discussed different things, and that's one of the teams that intrigues us," DeBartolo told SI. "L.A. is a costly situation, but it's wide-open, and I think the right group could make it work."

Given the nature of his exit in 1998, DeBartolo's potential NFL reemergence is something of a shock. A year after becoming embroiled in a Louisiana gaming scandal (then governor Edwin Edwards elicited a bribe in exchange for a casino license), DeBartolo pleaded guilty to not reporting an extortion attempt, a felony. He was given two years probation, and the NFL fined him $1 million. He then gave his half of the 49ers to his sister, Denise DeBartolo York, in exchange for their late father's real estate holdings and moved to Tampa. He was in NFL exile, an untouchable because of his legal issues and their gambling overtones.

But time has revitalized DeBartolo's image, not to mention his portfolio. He has quietly built up his real estate empire to a reported net worth of $1.4 billion, and last September Forbes rated him the 235th-richest American. Several of the old-line NFL owners who were eager to see him go are now out of the league, and two prominent owners told SI they believe DeBartolo would be approved should he attempt to purchase a team. "His accomplishments in the NFL are significant," says the Cowboys' Jerry Jones. "A progressive owner is priceless."

DeBartolo, 59, says buying the Buccaneers would be his first choice. (He looked into purchasing them three years ago but was rebuffed by owner Malcolm Glazer.) But he and Policy -- they had a falling out shortly before DeBartolo left the 49ers but have repaired their relationship -- have contemplated other teams, including the Saints, and their interest in the Raiders is piqued by whispers that Davis, 76, is ill. He has been using a walker because of a leg ailment and did not show up at February's scouting combine or a recent minicamp. "For Al Davis to miss the combine, that's unusual," DeBartolo said.



The Raiders, for their part, say that everything is status quo. "Al Davis is as vital and vibrant as ever," says CEO Amy Trask. "The closest Eddie and Carmen will come to taking a look at the Raiders will be watching them on TV." Still, however Oakland plays out, it will take someone like DeBartolo to make things work in L.A. He's charismatic and emotionally invested, the type of personality needed to sell football in what has been a lukewarm market in the past. And given the resistance of Southern California politicians to financing stadium projects, it will take deep pockets. The cost of the team and a new venue or a refurbished Coliseum could be $1.5 billion.

DeBartolo believes that he and Policy could find the partners to pull it off. Jones, one of 15 owners who participated in a May 17 conference call that detailed L.A. stadium proposals, thinks DeBartolo and L.A. would be a perfect fit. "To me, L.A. is about the ownership," Jones said. "Money alone won't get it done. It's going to take some serious talent and passion, and boy, when it comes to passion, inevitably you think about someone like Eddie."

Unconfirmed Rumor: Raiders CEO Amy Trask Leaving Oakland Raiders for NFL Front Office Job - Profootballtalk.com

I'm ready this correctly, but if Profootballtalk.com's little throw away line is correct, Raiders CEO Amy Trask may be leaving the organization for, as that publication put it, "A nice NFL front-office job." Read this:

EDDIE LOOKING TO GET BACK IN?

Nancy Gay of the San Francisco Chronicle, citing among other things a forthcoming story from Michael Silver of Sports Illustrated, reports that former 49ers owner Eddie DeBartolo is contemplating the possibility of seizing control of an NFL team and moving it to Los Angeles.

DeBartolo told Silver in March that the Raiders are a potential target, given an ongoing problem with attendance and owner Al Davis' "declining" health. (By the way, we've heard all sorts of rumors and speculation about the health condition of the guy who calls the shots in Oakland, but we've refrained from commenting on the subject out of respect for Davis. . . . And because we don't want to get sued.)

Teaming with former 49ers president Carmen Policy, DeBartolo also has eyeballed the Saints.

Raiders president Amy Trask told Gay in response to the SI story: "This is not a story about the Oakland Raiders being sold. This is not a story about the team relocating. This is a story about two gentlemen, Eddie DeBartolo and Carmen Policy, who clearly are drinking too much of Carmen's recently bottled wine.''

Zing!

"The only look those two are going to get at this team is if they want to watch it on television,'' Trask added.

Double zing! (Hey, this girl could write copy for us if that whole "high-paying NFL front-office job" thing doesn't work out.)

Five years ago, there were rumors that DeBartolo was interested in joining with Outback Steakhouse owners Chris Sullivan and Bob Basham to buy the Tampa Bay Buccaneers from Malcolm Glazer. Though DeBartolo denied any interest in buying the team in a story published on January 24, 2001, he indicated otherwise in an item dated January 27.

"Malcolm Glazer and his family are very astute business people," DeBartolo said, "and all they had to say was that team wasn't for sale. And they did. But if something were to happen, and the Holy Ghost came down and Malcolm said, 'I'd like to sell the team,' would I be interested? Maybe."

But even if DeBartolo could find a team willing to let him buy it, the other members of the Billionaire Boys Club would have to approve the transaction.

We'd be willing to bet the riverboat casino that they won't.

DeBartolo pleaded guilty in 1998 to federal felony charges resulting from his failure to report an alleged extortion attempt by former Louisiana governor Edwin Edwards, in which DeBartolo supposedly handed $400,000 in cash to Edwards in order to help DeBartolo win a riverboat casino license. In 1997, DeBartolo ceded control of the 49ers to his sister, Denise DeBartolo York, after DeBartolo was advised of his impending indictment.

And when DeBartolo signed away his interest in the 49ers to York in March 2000, Phillip Matier and Andrew Ross of the Chronicle wrote that the move occurred after "NFL Commissioner Paul Tagliabue made it increasingly clear that -- despite DeBartolo's willingness to turn state's evidence against Edwards down in Louisiana -- the league would never let him back into football."

So there's no way, as a practical matter, that DeBartolo would ever get control of an NFL team. There are simply too many other folks out there with the money and the interest.

And without the rap sheet

Rumor: Eddie De Bartolo To Buy Raiders? - Mike Silver Drops An Interesting Bomb - SF Chronicle

This rumor's gone round and round today, and it's denied by the Raiders' CEO Amy Trask. That former San Francisco 49ers Owner Eddie Debartolo and team president Carmen Policy may be in line to purchase the Oakland Raiders and move them to LA. Well, here's the Chronicle's take first...

Rumors haunt Raiders

Nancy Gay - SF Chronicle
Wednesday, May 24, 2006

Not a week goes by without whispers of one of the ailing NFL franchises in California pulling up roots to head for the fertile ground of the Los Angeles market. So this latest load of fertilizer spreading around NFL circles is no different.

As NFL owners concluded a two-day meeting in Denver on Tuesday to discuss filling the vacant and valuable L.A. market, the Raiders again are rumored as a candidate to become one of the two teams the league would like to place in Southern California.

Ideally, the NFL wants a gleaming expansion team in place first, either downtown in an extensively refurbished Los Angeles Coliseum or in a new stadium in Anaheim.

Then, as the long-standing rumor goes, a distressed franchise -- the Saints, the Chargers, the 49ers or the Raiders, all of whom play in archaic stadiums -- would be trucked to Los Angeles.

Now, a new twist on the L.A. Story: This fantasy tale involves former 49ers owner Eddie DeBartolo and team president Carmen Policy taking over the NFL team in Oakland and reclaiming the title "Los Angeles Raiders'' somewhere down south.

Sports Illustrated is publishing a story today in which DeBartolo intimates to senior writer Michael Silver -- who was an invitee to a lavish three-day Super Bowl reunion Eddie D. threw in Las Vegas in March -- that the Raiders' lack of attendance and the "declining" health of Raiders owner Al Davis makes the franchise vulnerable for a takeover.

According to the SI article, DeBartolo, 59, already has taken a crack at buying the Tampa Bay Bucs from Malcolm Glazer and was rebuffed. Glazer is recovering from two recent strokes.

The reunited DeBartolo-Policy team, the article says, also has explored moving in on the Saints, who play in a hurricane-ravaged city that's struggling to provide residents with clean drinking water, much less luxury boxes.

Now the duo is homing in on Davis. The DeBartolo-Policy interest, Sports Illustrated writes, "is piqued by whispers that Davis, 76, is ill. He has been using a walker because of a leg ailment and did not show up at February's scouting combine or a recent minicamp."

"For Al Davis to miss the combine, that's unusual,'' DeBartolo said in the story.

Granted, DeBartolo has rebuilt his billion-dollar fortune in real-estate development. But this SI article makes him and Policy look like two vultures, swooping in on distressed NFL properties and so-called ailing owners.

Sports Illustrated, in all fairness, did contact Raiders CEO Amy Trask for comment. Unfortunately, Trask says, the magazine omitted much of what she had to say in response.

But not this.

"This is not a story about the Oakland Raiders being sold. This is not a story about the team relocating,'' Trask said Tuesday as she left Denver. "This is a story about two gentlemen, Eddie DeBartolo and Carmen Policy, who clearly are drinking too much of Carmen's recently bottled wine.''

Policy's 10-acre vineyard in Napa County and his longtime dream of being a vintner might be bearing fruit.

Trask -- who speaks publicly only with Davis' specific blessing -- says Eddie and Carmen's dream of owning the Raiders is pure fantasy.

"The only look those two are going to get at this team is if they want to watch it on television,'' said Trask, adding emphatically that the Raiders are not for sale.

Now or, apparently, upon Davis' death.

"Al Davis currently has, and will continue to have, total control of the Raiders,'' she said, emphasizing the words "total control."

"And that will continue in perpetuity.''

Meaning, Davis has a succession plan firmly in place.

Trask was not specific, but it's believed in team circles that Davis would bequeath his stake in the Raiders either to his wife, Carol, or his son, Mark, who is becoming a daily fixture at the team's Alameda facility.

And what of the rumors about Davis' health?

The man does appear frail. When he was first spotted using a walker at training camp last summer, it prompted speculation that Davis is battling a debilitating illness such as Parkinson's.

True, he did not attend the NFL Scouting Combine in Indianapolis, which set tongues wagging farther. He also did not attend the team's minicamp the week after the NFL Draft.

"The rumors about his health are false. Al is as healthy and as vital as ever,'' Trask said. "First of all, he had no reason to attend the combine when we had people in place there and he could watch the workouts on the NFL Network.

"Second, he has not gone to the May minicamp for the last five or six years, at least. So why is that an issue all of a sudden?''

And those rumors of the Raiders conducting secret visits to vacant land in Sacramento, scouting potential stadium sites? More hooey, Trask said.

The Raiders' secretive nature, the type of public-relations camouflage that could make Opus Dei look like it's open for membership, makes them a bull's-eye for gossip.

But if DeBartolo is openly speculating about an owner's health in a national magazine as a means of getting a foothold back into the NFL, then the league strongly should consider whether it wants that type of person in its fold.

Again.

Superman Returns - See The New Trailer Here!

Ok, I've got to admit I'm still the 10 year old when it comes to my desire to see movie trailers of special-effects-laden films -- this one -- Superman Returns -- is certainly that. It's a good trailer. But I must admit the story line bringing Superman and Lois Lane together via Lex Luthor is rather "played."

I think the superhero movie that's not been written has someone -- Wonder Woman? -- fighting a real world problem and finding it more complex than first believed.

Well, here's the trailer:

Soupmovie.com - Dweebish-Looking (And Acting) Garden Variety Dude Star of Soap-Style Video Series

Man, I've seen everything. For some reason, the producers of "soupmovie.com" decided to select the most dweebish-looking garden variety dude anyone can find on the streets of Oakland for their online soap-video series about a guy who's dating three women. Still, it's an interesting tie in between their website and MySpace. Indeed, it seems like a slick kind of advertisement for MySpace.

Well, here's the video below. But before you look at it, I've got to warn you the guy can't seem to keep his finger out of his earloab. Man, that's grating! Plus, he's got the most ridiculous wise cracks. The only reason to watch is the story's interesting and the chick's moderately hot. Other than that, I give them some major credit for inventiveness. It's actually a bit simpler to do than "Rocketboom" -- which remind me that I forgot to check it out today.

"Tar Baby" - My Lawyer Has Another Take

So, I was complaining about White House Press Secretary Tony Snow's "tar baby" comment, when he said "What's wrong with that? It's not racist. He's talking about the Tar Baby. It's a character." When I reminded him that it's also a term used to poorly refer to someone black, he winced. Oh, and he's black.

Just goes to show that some people look at things differently. I just know that I've never used to the term.

MacBook Obsession!

Wow, it seems everyone that's into computers has some interest in Apple's new MacBook. Just check out MacBook Freak!

American Idol - Katharine McPhee and Taylor Hicks - Why Does She Get Top Billing?

I'm just interested. I may miss this -- or, maybe not. I wish it were like Rocketboom.com, where I can tune in at any time.

McPhee, Hicks vie for 'American Idol' crown
LYNN ELBER
Associated Press

LOS ANGELES - Katharine McPhee, the born-for-Broadway babe, and mop-topped manic dancer Taylor Hicks faced the music Wednesday on the season finale of "American Idol."

The choice for TV viewers was between the sultry McPhee, whose trained voice was shown to perfection Tuesday on the standard "Somewhere Over the Rainbow," and the raw sound and footloose moves of Hicks, who made his mark on Stevie Wonder's "Living for the City."

It was Katharine vs. Taylor, McPheever vs. the Soul Patrol fans, with a recording contract and the fifth "Idol" title up for grabs.

Last season's victor, Carrie Underwood of Checotah, Okla., was scheduled to perform.

McPhee, 22, was the first Los Angeles native to make it big on "American Idol," with a shot at becoming the only winner outside the South or Midwest. With a singer-vocal coach mom behind her and a starlet's beauty, McPhee looked and sounded groomed for success.

Hicks, 29, of Birmingham, Ala., whose thatch of prematurely gray hair helped him stand out from the pack, had barely survived the first audition at which judge Simon Cowell warned he didn't have a chance of advancing in the contest.

They weren't as odd a finals pairing as Ruben Studdard and Clay Aiken, but close.

McPhee attended the prestigious Boston Conservatory for a semester; Hicks has been a fixture on honky-tonk stages. McPhee skillfully played to the cameras, all calculated seduction; Hicks stomped across the set, wildly enough that Cowell compared him to a drunken dad at a wedding.

The finale closes out a relatively tame contest compared to seasons past, when jammed phone lines, technical glitches and annoyingly untalented singers drew complaints from fans. Last year, judge Paula Abdul denied an ex-competitor's claims of an affair in 2003.

This season's biggest jolt came when rocker Chris Daughtry of McLeansville, N.C., was voted out before the finale. Many observers had predicted he would win the contest after routinely drawing praise from the judges and online support.

Despite the lack of offstage drama, or because of it, this edition of "American Idol" was the most-watched yet. Compared to last year, the show was up 14 percent in total viewers with an average weekly audience of 30.3 million - impressive growth for an established program.

The Tuesday and Wednesday episodes routinely ranked as the top-rated TV shows, drawing 28 million or more viewers. The series also is seen via delayed broadcast or satellite delivery in more than 150 other countries.

Is Lou Dobbs Racist? I Want To Know.

Look, everytime I'm tuned into CNN as I'm working and the time happens to change to where his show comes on, Lou Dobbs can't seem to help basing his show around immigration, boarder patrols and Latino-bashing

If you doubt me, stay tuned to this blog and I'll present transcripts and whatever else I can get on the Lou Dobbs show. I'm sick of this stuff.

Maybe the CNN producers watched the movie "Network" one too many times!