|Andrew Fastow, Former Chief Financial Officer|
Harvey Pitt -SEC
Andrew Fastow served as the company's chief financial officer from May 1998 until October 2001. The company says at that time he was ousted for his alleged involvement in questionable business partnerships, while Fastow counters he resigned. He joined Enron's staff in 1990, and is largely credited for the company's innovative financing deals.
Fastow, who was promoted to CFO in his mid-thirties, earned accolades for diminishing Enron's debt and restructuring the company's finances to allow Enron to diversify its business. It was in 1997, congressional investigators say, that Fastow began to use off-balance sheet partnerships, like Chewco and LMJII, to increase Enron's capital and mask debt.
In February, 2002, Fastow appeared under subpoena by the House Energy and Commerce Committee regarding his role in the allegedly fraudulent partnerships and business deals. The former CFO, counseled by his legal representative, John Keker of Keker & Van Nest, invoked his Fifth Amendment protection against self-incrimination before the House panel.
Fastow, along with several other ex-Enron officials, is a defendant in dozens of lawsuits filed by shareholders and employees.
According to SEC-filed financial statements, Fastow personally earned approximately $30 million from the financial arrangements he set up for Enron.
On Oct. 2, federal prosecutors filed criminal charges against Fastow, accusing him of defrauding shareholders through a secret agreement that Enron Corp. would shield his LJM partnership from potential losses.
In a related matter, the SEC also filed a civil suit against Fastow, 40, for allegedly defrauding investors and violating securities laws. The SEC said it would seek unspecified civil penalties against Fastow and the repayment of unlawfully received gains.
-- By Liz Harper, Online NewsHour (Posted October 2002)