Tuesday, March 07, 2006
Enron: It's Fastow's turn on the stand
Former Enron chief financial officer Andrew Fastow -- one of the key figures in the collapse of the energy trader -- is poised to take the stand Tuesday in the trial of the failed energy trader's ex-CEOs.
Fastow would be the most senior executive to testify so far and is considered crucial in the case against Enron founder Kenneth Lay and former chief executive Jeffrey Skilling. Fastow is expected to provide critical details implicating his former bosses in the massive fraud that brought down Enron -- once the seventh largest company in the U.S.
His close ties to the defendants are expected to provide government prosecutors with damning evidence that Lay and Skilling were willing participants in the accounting scandal that pushed the company into bankruptcy in December 2001. But Fastow's own shady dealings and notoriously quick temper have been cause for concern for the prosecution -- and fuel for defense attorneys who hope to discredit him on the stand.
Fastow was the mastermind behind the fraudulent LJM partnerships -- the acronym actually stands for the first letters of his wife and two sons' names -- that were created to make complex deals to bolster Enron's profits and hide losses.
posted by Brian Moran @ 8:42 AM