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Causey’s plea

And the deal for Rick Causey is five to seven years in the clink in return for “cooperation” against Skilling and Kenny Boy.

Causey pleaded guilty to securities fraud during a re-arraignment hearing before Judge Sim Lake today. The plea deal calls for a sentence of seven years in prison that could be reduced to five years if he cooperates “fully” with the government. He also agreed to forfeit $1.25 million.

Such cooperation includes debriefing prosecutors on events that led to the company’s collapse.

The charge Causey pleaded guilty to normally carries a sentence of up to 10 years. Causey’s attorney said he was also working on a settlement agreement with the Securities and Exchange Commission. April 21 was set as a tentative sentencing date for Causey.

[…]

Lay and Skilling weren’t in the courtroom for the proceedings but their attorneys were present. Judge Lake agreed to delay the start of the Skilling-Lay trial; jury selection will begin at 9 a.m. on Jan. 30.

Daniel Petrocelli, an attorney for Skilling, said today that Causey pleaded guilty “for one reason and and one reason only,” to protect his family.

That’s all the reaction so far from the Skilling and Lay defense teams. I’m sure there will be more soon. For now, this is a big win for the prosecution. I’ll wait to see what they do with it before I have any further thoughts.

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