November 07, 2002
Fastow pleads innocent to all 78 counts

Well, at least now with the election over we can get back to what's really important, which is watching former Enron bigwigs do the perp walk while former employees of other Enron-like companies get nekkid. Towards that end, Andy Fastow has pleaded not guilty to all 78 counts of fraud, money laundering, conspiracy and obstruction of justice for which he has been indicted.

Unlike his predecessors in the courthouse, Fastow appears to be headed for trial instead of a plea bargain:

Fastow has filed a motion with U.S. District Judge Kenneth Hoyt, who will be the trial judge, asking for a continuance rather than an immediate trial date.

A defendant has a right to go to trial within 70 days, but federal rules allow a judge to grant a continuance in complex cases. Fastow is next due in Hoyt's court Jan. 13 for a status conference.


So far, attorneys on both sides indicate that Fastow is not cooperating with the government.

Legal experts have said Fastow's biggest incentive to do so would be in return for a promise that prosecutors would not charge his wife, Lea, who received some of the funds prosecutors have said are proceeds of criminal acts.

I guess we'll know what the feds' strategy is soon enough. If they really want to take down Skilling and Lay but don't have the goods, they'll arrest Lea Fastow in order to squeeze Andy. Or maybe they'll try to make an example of Fastow by going for a trial and conviction, in hopes it encourages Skilling and Lay to seek a plea when their time comes. Or maybe they have enough to nail all of them and are just taking it one scuzzball at a time.

In any event, it promises to be more fun than most other things in the news right now.

Posted by Charles Kuffner on November 07, 2002 to Enronarama | TrackBack