The Enron Scandal - Unmoderated Message Board

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Non-Tech : The Enron Scandal - Unmoderated

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To: Raymond Duray who wrote (2974)	4/7/2004 2:03:50 PM
From: Glenn Petersen	Read Replies (1) of 3602

Is this judge nuts? Good news for Skilling and Lay. Lea Fastow Withdraws Enron Plea Agreement us.rd.yahoo.com*http://news.yahoo.com/news?tmpl=story&u=/ap/20040407/ap_on_bi_ge/enron_lea_fastow_8 By KRISTEN HAYS, AP Business Writer HOUSTON - The wife of former Enron Corp. finance chief Andrew Fastow withdrew a plea agreement Wednesday after a federal judge balked at a sentencing deal that would have sent her to prison for five months and confined her at home for another five months. Lea Fastow's action throws into question a plea arrangement with her husband, who was to have faced 10 years in prison on two counts of conspiracy and had agreed to cooperate with prosecutors pursuing cases against higher-ups. U.S. District Judge David Hittner wanted a sentence of between 10 and 16 months for Lea Fastow. "Based upon my consideration and full reading of the presentencing report, the court declines to voluntarily limit its role in the sentencing process," Hittner said, in rejecting the sentence. He set trial for June 2. Based on presentencing guidelines, Lea Fastow could face 15 to 21 months in prison if convicted at trial. After on-again, off-again plea talks, Lea Fastow pleaded guilty in January to filing a false tax form. Andrew Fastow then pleaded guilty to two counts of conspiracy and admitted orchestrating schemes to make Enron appear financially healthy while enriching himself. He had been indicted with nearly 100 counts of fraud, money laundering, insider trading and other charges. The couple had wanted to ensure that at least one of them was free to take care of their 4- and 8-year-old sons. Lea Fastow acknowledged helping her husband hide ill-gotten income from the government, including endorsing and depositing checks made out to the children. Federal prosecutors have said that her husband's plea agreement would not be affected by any change in Lea Fastow's case. Prosecutors had supported the split sentence agreement, and Lea Fastow's lawyers did not ask that she receive less than five months in prison. Prosecutors noted in a court filing last week that nearly 60 percent of tax offenders received split sentences or probation in fiscal 2001. Prosecutors say that Lea Fastow played an "integral role" in securing her husband's guilty plea and cooperation more than a year after he was indicted. The Fastows also relinquished nearly $24 million in cash and property to the government.

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