Originally published February 7 2006
Enron's former chief accountant to plead guilty
by Mike Adams, the Health Ranger, NaturalNews Editor
Richard Causey was set to face trial on conspiracy and fraud charges along with Enron's former chairman and former president, but now it seems he will cooperate with prosecutors against them.
Enron Corp.'s former chief accountant, Richard Causey, was set to plead guilty on Wednesday to a security fraud charge in a plea bargain that could put him behind bars for seven years for his part in the 2001 collapse of the power-trading giant, sources close to the case said.
Causey was to face trial on conspiracy and fraud charges next month, with Enron's former chairman, Ken Lay, and former president, Jeff Skilling, in a joint defense effort, but now is likely to cooperate with prosecutors against his former bosses.
Under terms of the deal, federal prosecutors will request a seven-year prison sentence for Causey that could be reduced by two years if he cooperates "fully and truthfully," the source said.
The scandal opened a window on corporate accounting misdeeds and abuses generally that led to a toughening of federal security laws.
It also tainted the Bush administration because Lay had been a close ally of the Bush family for years and one of its biggest political donors.
Causey, after joining Enron in 1991, worked closely with Lay, Skilling and Chief Financial Officer Andy Fastow, who has pleaded guilty to security fraud in exchange for a likely 10-year sentence and is cooperating with prosecutors.
With the blessing of his bosses, Fastow created the off-the-books deals that Enron used to meet its earnings targets and has admitted making millions of dollars from the partnerships, often at Enron's expense.
His sudden switch from a key member of the defense to a potentially star witness for the prosecution could throw off the legal strategy for Skilling and Lay and force a delay in the trial now scheduled to start January 17 before Judge Lake.
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml