Former Enron CFO Fastow Faces More Charges; 8 Others IndictedMay 1, 2003 | AP
Former Enron Corp. Chief Financial Officer Andrew Fastow faces 31 more charges, and his wife and seven other former executives were indicted on a host of fraud, insider-trading and other counts.
Mr. Fastow now faces 109 charges related to the 2001 collapse of the Houston- based energy-trading giant, according to a new indictment unsealed in Houston. His wife, Lea, is charged with six counts including money laundering conspiracy, filing false tax returns and conspiracy to commit wire fraud.
Mrs. Fastow, a former Enron assistant treasurer, walked into the Internal Revenue Service office in Houston early Thursday and surrendered. Her husband dropped her off.
According to court filings, other Enron Broadband Services executives are also charged in a scheme to defraud that resulted in unlawful profits of $155 million.
Former EBS executives Ken Rice, Joe Hirko, Kevin Hannon, Rex Shelby and Scott Yeager were charged with securities fraud, wire fraud and money laundering. Two other EBS executives, Kevin Howard and Michael Krautz, had been charged previously and are named in new counts in Thursday's indictments.
The indictments allege that Messrs. Rice, Hirko, Hannon, Yeager and Shelby sold large amounts of Enron stock while they knew EBS was failing, bringing themselves some $186 million in profits. The government is seeking forfeiture of more than $100 million of those profits.
The new Fastow indictment also brings charges of securities fraud, insider trading, falsification of accounting records and tax fraud against two other Enron executives, former treasurer Ben Glisan and former finance executive Dan Boyle.
Mrs. Fastow is charged with conspiring to reap profits from Enron wind farms in a partnership known as RADR and, along with her husband, failing to report income to the IRS.
The Fastows worked at a Chicago bank before joining Enron in 1990. She was assistant treasurer when she left the company in 1997.
Names of the Fastows and their family foundation are on several bank accounts frozen by federal prosecutors before Mr. Fastow was indicted on Oct. 31. Mr. Fastow is free on $5 million bond. A status hearing in his case is scheduled for May 19.