According to the Houston Chronicle, former Enron CFO Andrew Fastow is negotiating a plea bargain that would send him to federal prison. He has apparently been offered a 10-year sentence.
It’s not clear whether those figures presume that Mr. Fastow would testify against other Enron executives. It may instead be merely quid pro quo for pleading guilty to some subset of the 98 counts of fraud, money laundering, insider trading and the like with which he is charged for his Enron escapades.
Anyway, all of this just shows how mad things are when it comes to supposed securities fraud. Andrew Fastow gets ten years (or less) for consciously and steadily engineering one of the largest corporate scandals in financial history; but Martha Stewart, who, if anything, was at the receiving end of some trivial inside information, is being told she could go to jail for fifteen years or more.
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