Risk Management

Fastow Heads to Louisiana

The former Enron CFO will serve out his six-year prison term 200 miles from Houston.
Stephen TaubNovember 10, 2006

Andrew Fastow, the former CFO of Enron, will spend the next six years in a Louisiana federal prison 200 miles northeast of Houston, reports the Associated Press. Fastow, who was assigned to the facility on Thursday, was hoping to serve his time at a federal prison in Bastrop, Texas, about 30 miles southeast of Austin, according to the report. But the judge had different plans.

The wire service described the detention center as being part of a prison complex that includes a low-security correctional institution and a satellite prison camp that houses minimum-security male inmates. In fact, there are only about 2,400 inmates in the entire complex, according to the report.

Fastow had initially agreed to serve 10 years in prison for the part he played in the Enron fraud that eventually led to the company’s demise. However, U.S. District Judge Kenneth Hoyt cut the sentence to 6 years, asserting that Fastow had already paid a steep price for his misdeeds, the AP pointed out.

Fastow recently concluded his deposition in a class-action lawsuit filed by investors suing investment firms and banks for the alleged role the organizations played in Enron’s collapse, according to the AP. He spent more than eight days providing the most expansive deposition in a number of civil suits, reported The New York Times. However, Merrill Lynch told the paper that the deposition “did not break any material new factual ground.”

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