FEDS GO AFTER WIFE OF ENRON'S FASTOW

December 20, 2002 -- Feds are turning up the heat on tough-minded Andrew Fastow by preparing to charge the former Enron chief financial officer's wife.

A federal grand jury reportedly has heard testimony about Lea Fastow, who will be 41 next week, regarding money she and the family may have received from Enron.

"Lea Fastow, the former Lea Weingarten, got $54,000 as administrative assistant for one of Enron's phony partnerships called Chewco, according to a Justice Department filing.

Sources familiar with the situation said Lea Fastow's position was a "no show" job and prosecutors have alleged the money was a "kickback." That money could be considered the proceeds of criminal acts according to legal experts."

Each of the suspect entities (corporations) had officers and boards. Apparently these folks were SO corrupt (and stupid) that they used their own wives to fill above-mentioned posts.

More power to the prosecutors. This will put potentially corrupt officers on notice. This will warn family, who may know of possible corrupt schemes, to tell hubby: "...no, no, no. I don't want to go to jail, or get sued, over your ill-dealings."

It will hopefully illustrate to junior employees, who might be in similar roles, to beg off, blow whistles, etc.

I happen to believe that most corporate managements are honest.

Beyond simply being honest, they SHOULD see it as being in the LONG TERM best interest of all constituencies (employees, shareholders, officers, creditors, customers) that corrupt dealings DO NOT TAKE PLACE.

Even the allegation on wrongdoing deals a heavy blow to share values. Hence, honest is the best policy.

Now, it is time to expect the AICPA, the SEC, the FASB to unravel their many practices and rules, which give cover to shady, corrupt and DECEPTIVE accounting.

Every kind of debt and liability should go on the balance sheet, period.

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