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Rediff.com  » Business » Enron's Andrew Fastow gets 6 years jail

Enron's Andrew Fastow gets 6 years jail

Source: PTI
September 27, 2006 04:37 IST
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Bankrupt energy giant Enron's financial whiz Andrew Fastow was on Tuesday sentenced to six years in prison and two years of community service for his role in the spectacular collapse of the firm that saw thousands of people lose their jobs as well as millions of dollars.

The chief finance officer of the Houston, Texas-based corporation had faced 10 years in the plea deal he struck earlier. He asked the judge to send him to prison for five years.

He had struck the deal with the prosecution promising assistance in the federal government's probe of a scandal that has taken on many dimensions.

The judge had called on former Enron employees to speak prior to sentencing, but only two signed up.

Fastow's attorney and a representative of the University of California argued that Fastow had cooperated extensively with authorities trying to find a way to hundreds of investors who went broke the day the financial giant collapsed.

Representatives of investor groups had apparently made the point that Fastow could help in the recovery of billions of dollars from banks who are yet to settle with investors.

The former energy giant folded in December 2001 as years of cooking the books was not able to hide the accruing of billions of dollars of bad debts.

Thousands of jobs were lost and the collapse of Enron is said to have wiped out more than $60 billion in market value and some $2 billion in pension plans.

Originally Fastow was indicted on some 98 counts including fraud, insider trading and money laundering.

But he pleaded guilty to two counts of conspiracy and surrendered nearly $30 million in cash and property.

Fastow's cooperation, it is said, helped in the convictions of the Enron founder Kenneth Lay and former chief executive Jeffrey Skilling.

Lay died this July before sentencing and legal analysts have said that his conviction will likely be thrown out even if his estate may be sued for civil damages.

Skilling is due to be sentenced next month.

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