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Sarbanes-Oxley News & Developments
Fastow Faces More Charges; Other Enron Executives Are IndictedEx-Enron CFO Andrew Fastow faces 31 additional charges, his wife and nine former executives were indicted on a host of fraud, insider-trading and other counts.
> > Ex-Enron CFO Andrew Fastow now faces 109 charges related to the 2001 collapse. His wife, Lea fastow, is charged with six counts, including money-laundering conspiracy, filing false tax returns and conspiracy to commit wire fraud.
Andrew Fastows new indictment brings charges of securities fraud, insider trading, falsification of accounting records and tax fraud against two other Enron executives, former treasurer Ben Glisan and former finance executive Dan Boyle.
The indictments now number 19 individuals charged in the Enron case, with six of those already entering guilty pleas.
Seven former executives with an Internet division called Enron Broadband Services (EBS)also were charged in the new indictments. The indictments allege that five of the former EBS executives sold large amounts of Enron stock while they knew the division was failing, bringing themselves some $186 million in profits. The government is seeking forfeiture of more than $100 million of those profits.
In a related action, the SEC filed suite against five EBS executives, Kenneth Rice, Joseph Hirko, Kevin Hannon, Scott Yeager and Rex Shelby, charging them with civil fraud and insider trading that netted them more than $150 million in unlawful profits. The SEC wants the five men to pay back that money as well as unspecified fines.
Former Enron employees/executives indicted today for a host of fraud, insider trading and other counts were; Andrew Fastow (31 additional charges), Lea Fastow, Ben Glisan, Dan Boyle, Kenneth Rice, Joseph Hirko, Kevin Hannon, Scott Yeager, Rex Shelby, Kevin Howard and Michael Krautz.
Source: The WSJ article dated May 1, 2003
Published:2003-05-01
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