Dec. 13 (Bloomberg) -- Former Enron Corp. Chief Executive Officer Jeffrey Skilling, convicted of spearheading a fraud that destroyed his company, may report to prison in Minnesota as early as today to begin a 24-year sentence, his lawyer said.

Skilling, 53, will serve his sentence at the low-security Federal Correctional Institution in Waseca. A federal appeals court yesterday rejected his last-minute request to remain free on bail while he challenges his conviction. His lawyer, Daniel Petrocelli, said Skilling will ``likely'' enter prison today.

More than 5,000 jobs and $1 billion in employee pensions vanished when Enron collapsed five years ago, following revelations of a widespread accounting fraud directed by Skilling and former Enron Chairman Kenneth Lay. Investors are suing to recover more than $30 billion in losses. Convicted in May along with Skilling, Lay died in July before he could be sentenced.

The federal prison where Skilling will serve his term lies near the edge of Waseca, population 9,737, nestled between two lakes in the hills of southern Minnesota, 75 miles south of Minneapolis and more than 1,000 miles away from Houston, Enron's former headquarters.

A sign by one lake bears the town's slogan: ``Waseca: for an Hour or a Lifetime.''

With good behavior, Skilling, who was convicted of 19 counts of fraud, conspiracy, insider trading and lying to auditors, can expect to serve 85 percent of his sentence, or roughly 20 years. If he enters an alcohol treatment program, he could shave another year off his term.

Hope

In its order rejecting his bail request, the U.S. Court of Appeals in New Orleans may have provided Skilling with hope of shaving even more time off his sentence through an appeal, which his lawyer said will be filed as early as February.

The court said it found weaknesses in Skilling's conviction, citing its decision earlier this year in a related case. Skilling maintains his innocence and said he was made a scapegoat in Enron's collapse and bankruptcy.

Skilling, who transformed Enron from a sleepy pipeline company into the world's largest energy trader before the company plunged into bankruptcy in 2001, has been under house arrest in his 9,215-square-foot Mediterranean mansion in Houston's River Oaks section. The house, valued on tax rolls at more than $5 million, will be sold to help Skilling pay $45 million in court-ordered restitution to his victims. He can give half the proceeds from the sale to his three children.

The case is U.S. v. Skilling, 06-20885, U.S. Court of Appeals for the Fifth Circuit (New Orleans).

To contact the reporter on this story: Laurel Brubaker Calkins in Houston at laurel@calkins.us.com.

Last Updated: December 13, 2006 07:05 EST