Houston – Andrew Fastow, the finance chief who propped up Enron Corp.’s teetering finances while secretly pocketing more than $45 million for himself, was granted leniency Tuesday as a federal judge sentenced the former executive to serve six years in prison.
Fastow pleaded guilty to two conspiracy charges in 2004, agreeing to testify against his former supervisors in exchange for a maximum 10-year prison sentence. His lawyers, in court papers last week, sought leniency from the judge. Citing that cooperation with the government, U.S. District Judge Kenneth Hoyt agreed to their request for a reduced sentence.
In brief remarks, a graying, hunched Fastow, 44, tearfully apologized to his family and to the investors and employees who lost billions as Enron collapsed in late 2001. Fastow had a moment to hug his wife, Lea Fastow, before being handcuffed and led outside the 11th-floor courtroom.
A finance wizard who devised ingenious structures to hide debt and generate cash flow for the struggling Houston energy company, Fastow came to symbolize an era of corporate greed. The disclosure of outside partnerships he used to disguise Enron’s problems and enrich himself sent the company on a path toward bankruptcy.
During better times in the 1990s, Fastow earned millions of dollars and picked up industry accolades, including an award for excellence as a chief financial officer from CFO Magazine. His agonized testimony against former chief executives Jeff Skilling and Ken Lay helped prosecutors win fraud convictions against both men in May. Lay died of heart disease in July, and his lawyers are seeking to vacate his conviction. Skilling, 52, is to be sentenced next month in Houston on 19 conspiracy, fraud and false-statements charges.
