Return to Transcripts main page

CNN Live At Daybreak

Enron Legal Maneuvers

Aired January 09, 2004 - 05:04   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: A former Enron executive has until high noon to make a major decision and her future is not the only one at stake.
CNN's Jen Rogers is following the Enron legal maneuvers.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN CORRESPONDENT (voice-over): After nearly two years of investigations, the Enron task force may be close to its biggest breakthrough yet. A federal judge Thursday set a deadline of noon Friday for Lea Fastow's team to decide whether or not she wants to enter a new plea, a guilty plea, that would be part of an agreement with the government to limit her jail sentence to five months.

Lea Fastow, wife of former Enron CFO Andrew Fastow, the alleged mastermind behind the web of complex accounting deals that brought down the energy giant, was charged in a six count indictment last May. While it could be a big step forward, there's a hitch. The judge didn't sign off on all the details of the deal, expressing concern over the preliminary agreement.

So the ball is now in Mrs. Fastow's court. Her decision, to change her plea and risk that the judge might up her sentence, or stick with her not guilty plea and head to trial.

Lea Fastow's attorney spoke earlier Thursday about his client's motivation for changing her plea.

MICHAEL DEGUERIN, LEA FASTOW'S ATTORNEY: You'd have to be a mother to fully understand. She has two children at home, five and eight. And five months works. Anything more than that doesn't.

ROGERS: If Lea Fastow pleads guilty, it is expected to set in motion a series of major announcements, including a deal for her husband. Many would see that potential agreement as a huge victory for the government and a possible step towards turning up the heat on other former Enron officials, including two men at the top of the Enron food chain, Ken Lay and Jeffrey Skilling.

DAVID BERG, TRIAL LAWYER: The government wants him desperately. He's the best key they've got to Skilling and Lay, and potential indictments and convictions of those two men.

ROGERS: Mr. Skilling's attorney did not return calls for comment. Mr. Lay's attorney says as long as the Fastows tell the truth, his client won't be impacted at all. (on camera): If Mrs. Fastow does not change her plea, this case is headed to trial. In fact, jury selection was under way Thursday and a February 10 trial date has been set for Mrs. Fastow. For Andrew Fastow, there's an April 20 trial date waiting in the future.

Jen Rogers, CNN Financial News, Houston, Texas.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired January 9, 2004 - 05:04   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A former Enron executive has until high noon to make a major decision and her future is not the only one at stake.
CNN's Jen Rogers is following the Enron legal maneuvers.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN CORRESPONDENT (voice-over): After nearly two years of investigations, the Enron task force may be close to its biggest breakthrough yet. A federal judge Thursday set a deadline of noon Friday for Lea Fastow's team to decide whether or not she wants to enter a new plea, a guilty plea, that would be part of an agreement with the government to limit her jail sentence to five months.

Lea Fastow, wife of former Enron CFO Andrew Fastow, the alleged mastermind behind the web of complex accounting deals that brought down the energy giant, was charged in a six count indictment last May. While it could be a big step forward, there's a hitch. The judge didn't sign off on all the details of the deal, expressing concern over the preliminary agreement.

So the ball is now in Mrs. Fastow's court. Her decision, to change her plea and risk that the judge might up her sentence, or stick with her not guilty plea and head to trial.

Lea Fastow's attorney spoke earlier Thursday about his client's motivation for changing her plea.

MICHAEL DEGUERIN, LEA FASTOW'S ATTORNEY: You'd have to be a mother to fully understand. She has two children at home, five and eight. And five months works. Anything more than that doesn't.

ROGERS: If Lea Fastow pleads guilty, it is expected to set in motion a series of major announcements, including a deal for her husband. Many would see that potential agreement as a huge victory for the government and a possible step towards turning up the heat on other former Enron officials, including two men at the top of the Enron food chain, Ken Lay and Jeffrey Skilling.

DAVID BERG, TRIAL LAWYER: The government wants him desperately. He's the best key they've got to Skilling and Lay, and potential indictments and convictions of those two men.

ROGERS: Mr. Skilling's attorney did not return calls for comment. Mr. Lay's attorney says as long as the Fastows tell the truth, his client won't be impacted at all. (on camera): If Mrs. Fastow does not change her plea, this case is headed to trial. In fact, jury selection was under way Thursday and a February 10 trial date has been set for Mrs. Fastow. For Andrew Fastow, there's an April 20 trial date waiting in the future.

Jen Rogers, CNN Financial News, Houston, Texas.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com