Ex-Enron executive in plea deal talks

By Greg Farrell and Jayne O'Donnell
USA Today

Former Enron CFO Andrew Fastow and his wife, Lea, who also worked at Enron, are trying to structure their plea bargains to avoid simultaneous jail terms. Associated Press

The two-track operation indicates that the task force is finally near a decision as to whether to bring criminal charges against Enron's former chief executive Jeff Skilling and former chairman Kenneth Lay.

Andrew Fastow has been indicted on 98 counts of fraud, money laundering and inside trading from his role in helping Enron appear to be one of the nation's largest companies. Lea Fastow, who also worked at Enron, has been charged with conspiracy and tax evasion.

As of last night, it was uncertain whether the Fastows would go forward with their on-again, off-again attempts to strike a deal with prosecutors in return for reduced sentences. U.S. District Judge David Hittner told Lea Fastow yesterday that he refused to be locked in to the five-month prison sentence that her lawyers had negotiated with prosecutors.

A person close to the negotiations says Andrew Fastow had agreed in principle to a 10-year prison sentence provided that he cooperated with prosecutors' continuing investigation of Skilling and Lay. Fastow could also assist the prosecution's case against Causey.

But the negotiations are complex. One of the reasons that Lea Fastow wants to limit her jail time to five months is that she and her husband have two young children, and they're trying to structure their pleas so they're not both in jail at the same time.

If Lea Fastow doesn't plead guilty, her trial is scheduled to begin Feb. 10. If she's found guilty, she could face several years in prison. Her husband, who is scheduled to go to trial after her, could face decades in jail if convicted.

"Andy Fastow needs to jump on this deal or he risks being in jail so long that his great-grandchildren are going to have to visit him there," says Houston attorney Thomas Ajamie.

Charges against Causey have been expected since October 2002, when he was first implicated in an indictment against Fastow. But the criminal charges against him are likely to involve recent investigations of how Enron covered losses from one division with profits from another.