Thursday, December 29, 2005

Enron Chief Accountant Pleads Guilty to Securities Fraud

As Carrie Johnson reports in the Washington Post, former top Enron accountant Richard Cuasey pleaded guilty yesterday to one count of securities fraud. Causey faces a sentence of five to seven years, depending on his assistance to the Justice Department Enron Taskforce's case against Ken Lay and Jeffrey Skilling.

Causey's position as chief accountant granted him a good deal of insight and knowledge about Ernon's fraudulent accounting reports, including the self-dealing side deals made by convicted former Enron exec Andy Fastow with Enron. However, the former accountant's benefit to the government's case may be tempered by his credibility or the defense efforts to paint him as a man cutting a deal due to financial and legal pressures.

With Causey's plea, only two defendants are left relating to Enron's massive fraud and the inevitable financial collapse it caused: Lay and Skilling. Their trial is scheduled to begin on January 30.

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