Risk Management

Ex-Enron Accounting Exec Gets 5 Years

Causey seems to have followed in Fastow's footsteps when it came to sentencing.
Stephen TaubNovember 15, 2006

The last of the alleged key architects of Enron’s massive accounting scandal is headed to prison for his role in the scandal. Richard Causey, the company’s former chief accounting officer, was sentenced to five-and-a-half years in prison, according to the Associated Press. This is six fewer months than his former boss, one-time CFO Andrew Fastow.

Causey had earlier agreed to serve seven years in prison, reported the AP, and may have received a reduced sentence based upon his level of cooperation with prosecutors. Similarly, Fastow agreed to serve 10 years in prison, and his term was reduced by four years.

In December, Causey pleaded guilty to securities fraud just two weeks before he was scheduled to go on trial along with Enron founder Kenneth Lay and former Chief Executive Jeffrey Skilling. Under his plea deal, Causey also agreed to pay $1.25 million to the government and forfeit a claim to about $250,000 in deferred compensation, according to the AP.

Causey was one of the only former Enron executives who did not keep some money for himself from the illegal transactions, noted the wire service. According to the report, prosecutors decided not to try to seize Causey’s $950,000 home in a Houston suburb.

Next on the docket: On Friday, Mark Koenig, Enron’s former investor relations director, and Michael Kopper, an Enron managing director and one-time Fastow aid, are scheduled to be sentenced.