Andrew Fastow Enters Guilty Plea In Enron ScandalJan 14, 2004 | Portland Business Journal Andrew Fastow, a key player in an accounting scandal that led to the collapse of Houston-based Enron Corp., pled guilty to two counts on Wednesday afternoon as part of a plea bargain deal that will send him to prison, according to news reports.
His wife, Lea Fastow, also a former Enron employee, was expected to also enter a guilty plea on charges relating to Enron's collapse later in the day.
Andrew Fastow, Enron's former chief financial officer, pled guilty to the counts of conspiracy to commit wire fraud and conspiracy to commit securities fraud, according to wire reports. Fastow also agreed to give up $23.8 million in assets, most of which had been frozen by federal authorities, according to Reuters.
Fastow is expected to get a 10-year sentence in federal prison, according to reports from FT.com and Forbes.com. Lea Fastow, former assistant treasurer of Enron, is expected to serve five months for her role in the downfall of Enron, parent company of Portland General Electric.
The Fastows are believed to have taken home $45 million through their parts in defrauding Enron and its shareholders of millions of dollars.
The couple is expected to help federal prosecutors create a case against other Enron executives thought to be involved in bilking the company.
It looked as if the Fastows might reach a plea bargain last week, but negotiations broke down, only to be resumed this week.