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Lea Fastow Plea Deal Tossed

 

Updated from 12:32 p.m. EDT

A federal judge rocked the Enron criminal prosecution Wednesday by rejecting a plea deal with Lea Fastow, the wife of the bankrupt energy company's former chief financial officer, Andrew Fastow.

In a surprising twist, U.S. District Judge David Hittner said he would not accept the plea arrangement that prosecutors had negotiated with Fastow's wife. The move prompted Fastow to withdraw her guilty plea, and the judge immediately scheduled a June trial in the case.

The plea agreement, which had Fastow serving five months in a federal prison and another five months under home detention, had been critical in getting Fastow's husband to plead guilty and agree to cooperate with prosecutors in the Enron fraud investigation. Fastow's subsequent cooperation led to the indictment of former Enron CEO Jeffrey Skilling and former Enron chief accounting officer Richard Causey. ...

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