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. Continue reading
Kenneth Lay and Jeffrey Skilling, both former heads of Enron Corp., were found guilty by a jury on Thursday of conspiracy to commit securities fraud and wire fraud. The trial lasted almost four months, and the jury deliberated for nearly six days.
Skilling was convicted of 19 of the 28 counts he was charged with, and Lay was convicted on all six counts against him. Lay was also convicted of two federal charges brought against him by the Federal government in a separate trial.
The collapse of Enron, one of the biggest business scandals in U.S. history, became synonymous with the word fraud.