Risk & Compliance

Fastow Sentencing Date Delayed

Perhaps the first of several delays until all Enron trials have been concluded.
Stephen TaubMarch 22, 2004

Andrew Fastow won’t be moving into his new one-room digs anytime soon.

The former Enron chief financial officer, who has agreed to spend 10 years in prison as part of his plea deal, had his scheduled sentencing delayed.

He was initially expected to be officially sentenced in April, but U.S. District Judge Kenneth Hoyt has postponed this event until October 25, according to the Houston Chronicle. This delay was expected, however, since Fastow is cooperating with Enron Task Force prosecutors. In fact, the paper said his sentencing date will likely be reset a number of times until the last Enron criminal trial — whatever trial that may be — is complete.

Such delays are typical for cooperating witnesses, explained the paper. The defendants have agreed to be sentenced after the government believes they have cooperated fully and after the last case in which their testimony may be relevant.

The situation regarding Fastow’s wife Lea is a little different.

On January 14 she pleaded guilty to one count of making a false statement on a tax return, and she is still scheduled to be sentenced by U.S. District Judge David Hittner on April 7.

Her deal calls for a 10-month sentence — five months to be served in federal prison and five months under house arrest. Unlike her husband, Lea Fastow may withdraw her guilty plea if Hittner announces he will not accept the agreement, in which case she would go to trial, explained the Chronicle.

The paper also reported that last week prosecutors filed papers finalizing the surrender by the Fastows of $23.8 million, including homes in Galveston, Texas, and in Vermont.