Enron Executive Sentenced to Prison

Andrew Fastow, former CFO of Enron, was sentenced to six years in federal prison today. Following his prison term, Fastow is required to serve two years of full-time community service.

Fastow reached a plea deal in early 2004, in which he agreed to plead guilty to two counts of conspiracy to commit fraud. That deal included a recommended prison sentence of 10 years, but Judge Kenneth Hoyt had discretion to sentence him to less time.

It is believed that the actual sentence was less than agreed because of Fastow’s cooperation in the case against Kenneth Lay and Jeffrey Skilling, along with a document submitted by Fastow in the Enron shareolders’ lawsuit. In that document, Fastow named names, and it is possible that his help with this case influenced the judge’s decision.

Fastow was immediately taken into federal custody, rather than being allowed to turn himself in later. His wife, Lea, pleaded guilty to a misdeameanor tax charge in 2004 and served one year in prison.
Kenneth Lay passed away shortly after being found guilty of federal charges related to Enron. Jeffrey Skilling was also found guilty on related charges, and will be sentenced in late October.

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