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Former Enron executive is indicted in company's collapse
( 2002-11-01 13:24 ) (7 )

Andrew S. Fastow, the former chief financial officer of Enron, was indicted today on charges that he manipulated a series of off-the-books partnerships to disguise the company's financial performance while enriching himself with millions of dollars.

Mr. Fastow is the most prominent Enron executive to be accused of acting illegally in an accounting scandal that brought about the stunning collapse of the onetime energy-trading giant.

The indictment, which had been expected, accused Mr. Fastow of securities fraud and other criminal charges. Earlier this month, federal prosecutors filed a criminal complaint against Mr. Fastow, charging him with fraud, conspiracy and money laundering.

Today, a federal grand jury in Houston returned a 78-count indictment accusing Mr. Fastow of leading the effort to conceal Enron's losses and debts and inflate the company's energy-trading profits.

If convicted, Mr. Fastow could be sentenced to decades in prison and face millions of dollars in fines.

Mr. Fastow, who surrendered to F.B.I. agents on Oct. 2, when the criminal complaint was filed, is free on $5 million bond.

Under federal rules, prosecutors had 30 days from the day the charges were filed to bring a grand jury indictment, unless they sought an extension. At the time the criminal complaint was filed, prosecutors said they expected to indict Mr. Fastow within the 30 days. That deadline is this week.

A federal complaint, which is a sworn statement from a law enforcement official, can be used to arrest a potential defendant and to obtain bail. Such complaints are often used when there is concern that the focus of a criminal inquiry is a risk to flee; they are also used for strategic purposes, to pressure defendants and witnesses to strike a deal with the government.