October 03, 2002
Fastow followup

More speculation today that the arrest and indictment of Andrew Fastow will lead to more big fish, as the plea bargain with Michael Kopper helped lead to Fastow.

While Fastow is charged with stealing money from Enron investors to personally enrich himself, the court documents make no similar allegations against [chief accounting officer Richard] Causey, former Enron chairman Ken Lay, [Jeff] Skilling or the company's board.

But the criminal complaint lists by title -- not name -- former Enron executives, including Causey, who prosecutors claim made "false representations" to the company's board of directors that allowed Fastow's schemes to be approved.

Among those who prosecutors charged made false representations to the board was a former Enron CEO. One source close to the case said that was a reference to Skilling, not Lay, whom he replaced in that job in March 2001.

The charges also mention that Enron's former treasurer helped deceive investors and the company's board of directors. Though not named, Ben Glisan was company treasurer during the period described in court papers.

Fastow himself could be a critical witness against his superiors in the company, said experts who reviewed the wording of the charges against him.

And the document itself may be designed to send a signal.

"The reason people are identified but not named may be to send a loud and clear message to those Enron executives that this is the last opportunity to fashion a deal with the government," [Philip Hilder, attorney for Enron executive Sherron Watkins] said.

It'd be nice to see the Dems make some more of this like I thought they would. Maybe Enron is the dud that Mickey Kaus said it would be, but that doesn't mean that Republicans aren't nervous about the economy. What else do they have if people aren't talking about Iraq?

(CSM link via Kos.)

Posted by Charles Kuffner on October 03, 2002 to Enronarama