Enron's Fastows Seek Plea Bargains

© Reuters 2004. All Rights Reserved. ^ | Wed January 7, 2004 | REUTERS

[Liz]

NEW YORK (Reuters) - Andrew Fastow, the former chief financial officer of bankrupt energy trader Enron Corp., and his wife, Lea, are negotiating plea bargains that could send the couple to federal prison, the Houston Chronicle reported Wednesday.

Federal prosecutors are discussing a 10-year sentence for Andrew Fastow and a five-month term for Lea Fastow, the newspaper reported, citing unnamed sources.

The deals could still collapse, as earlier negotiations with Lea Fastow did in November, the paper reported.

A representative for the U.S. Attorney's Office for the

Southern District of Texas was not reachable for comment. John Keker, Andrew Fastow's lawyer, was also not immediately reachable.

Andrew Fastow is accused of creating complex financing structures that defrauded Enron and its shareholders. He has pleaded not guilty to nearly 100 charges.

Lea Fastow, a former assistant treasurer at Enron, is charged with six criminal counts.

© Reuters 2004. All Rights Reserved.

[cynicom]

Hang the man.

[laconic]

Seeing as Andy Fastow could get something like 200 years in jail if he's convicted, 10 years after a plea bargain ain't bad by comparison. I assume that part of the deal is that he "delivers" certain higher-ups at Enron.

[ken5050]

Yup..Lay and Skilling are toast....but he's probably trying to negotiate to save his wife from any prison time..it's interesting that this trial balloon gets floated NOW int he press..hard to tell who is the source, the US atty, or the defense...

[steve50]

10 years would boil down to 3 or 4 at a federal country club. I read he's a repeat offender, big fine and 6 months suspended over another little scam. If he gets off this easy he better be able to hand them some investment bankers heads on a platter.

[Liz]

Yup, hang.....then draw and quarter the bum.

[laconic]

I doubt that they'll put Fastow in some country club. To make the right point, he almost has to go to some place like Leavenworth or Lewisburg; there will be an outcry if he gets a place with tennis courts and weaving lessons. They probably will put his wife Leah in some federal hospital or other low-security institution. Of course, if he's handing over Lay and Skilling, the feds may be willing to give him a lot more in the bargain. I would imagine as well that the huge home in River Oaks, the Fastow "Foundation" and scores of hidden bank accounts are toast as part of the deal.

[Prince Charles]

Paging Kenny Lay... Paging Jeff Skilling...

[cynicom]

Man swipes a steak from super market gets hard time and is a criminal. These people steal millions and they barter with the law as to their punishment????

[Liz]

I assume that part of the deal is that he "delivers" certain higher-ups at Enron.

Better believe that to shorten his jail term, Fastow will "deliver" people that didn't even know they were involved in his schemes.

[steve50]

I think it depends on who is willing to take a fall. I remember a sound bite from Faux about a year after Enron broke that poor kenny, after all he cashed out with, was down to his last $10 million. If they can hide and keep the loot(which them seem to excel at) they might be willing to work on their tennis game for a couple years.

[Liz]

Paging Kenny Lay... Paging Jeff Skilling... better speed-dial your lawyers....NOW...

[Liz]

That's easy.....the gov't. There's a lot of angry unemployed ex-Enroners and those got stiffed out of their pensions who are sitting, knitting (ala Madame Dufarge), and muttering "guillotine."

The Fastow's are chomping at the bit to get deals that'll keep their sorry rumps out of longterm jail, but the gov't knows disenfranchised Enroners need to be placated.

[Drango]

Federal prosecutors are discussing a 10-year sentence for Andrew Fastow

SMIRK... get Martha while you're at it.

[sandydipper]

Federal time is 85% - any conviction, any behavior. 85% of 10 years is 8 1/2 minimum.

[laconic]

Yes, I remember the new Mrs. Lay bawling to Katie Couric "we have nothing!" after the scandal broke and before the Lays had to sell their Aspen properties for what, $20 million? Don't they still live in the penthouse of one of the finest high rises in Houston. I should be so poor! I remember reading that Ken Lay, the son of a Baptist preacher, at the height of the Enron deception went home for his 40th high school reunion to his rural Missouri hometown where $35K is probably (and rightly) considered an excellent yearly income. To the amazement of his classmates, Lay ran on about how they had just built another new home and his wife couldn't keep within the $2 million budget he set for decorating it! Some people are clueless.

[steve50]

Federal time is 85% - any conviction, any behavior. 85% of 10 years is 8 1/2 minimum.

We'll see. Laws are made to be bent, at least for these people.

[Liz]

It all depends on how much you got hidden away to pay slick lawyers.....betcha the Fastows got mucho bucks stashed offshore. They put their philanthropic (gag) "foundation" to good use, you can be sure.

[ken5050]

Not quite sure....look, Fastow's gonna do hard time..he'll spend at least ten years remembering not to bend over in the shower...but if I recall, from previous examples, like the sentencing for the the Imclone dude...when the sentencing rumors first appeared, then were all at the "bottom" end of what he got..thus, in the Fastow case...ten years is probably the low end, and remember, in the Fed system..you must do 85%, I think of the sentence...Fastow might get 15 years..be out in 13, with NO jail time for his wife, if he gives up the goods on Lay and Skilling ASAP, to allow time for the DoJ to nail those guys right before the election....real god publicity, y'know....also..Fastow, and his wife, are gonna have to disgorge EVERYTHING....

[laconic]

I remember reading that Waksal's attorneys wanted his prison "job" to involve scientific research; instead, he's the lead potato peeler in the kitchen. I find it hard to visualize Andy Fastow as he reportedly was at Enron: talking down to his fellow "employees" (this could be real dangerous in prison); power lunching on baloney sandwiches; and the only "foundation" he'll be working with is the prison floor when he mops it.