Let’s see if I get this straight.
On one hand, Andrew Fastow — who served up his wife as a sacrifical lamb for his embezzlement of millions from Enron that triggered one of the largest bankruptcy cases in U.S. history, who used the NatWest Three to hide his embezzlement of millions more and then turned on the U.K. bankers to save his skin, who very well may have forged Richard Causey’s initials on the Global Galatic “agreement,” whose bizarre testimony during the Lay-Skilling trial was largely discounted by jurors and who had a large hand in ruining the careers of four innocent Merrill Lynch executives in order to lessen his prison sentence — is sentenced to six years in prison.
On the other hand, Jamie Olis — who worked on a transaction to improve his company’s earnings, did as he was told by his superiors, did not profit from the transaction, defended his company and himself against allegations of wrongdoing with regard to the transaction and did not trigger any type of insolvency case by his company — is sentenced to six years in prison.
These results are not the product of a rational application of our criminal justice system. Ellen Podgor has additional thoughts, particularly how the Fastow sentence may bear on the anticipated life sentence that former Enron CEO Jeff Skilling faces.
Houston's Clear Thinkers
Longtime Houston attorney Tom Kirkendall's observations on developments in law, business, medicine, culture, sports, and other matters of general interest to the Houston business, professional, and academic communities.
Andy served up anyone and everyone he could to save his skin. His parting shots at the banks YESTERDAY and his sentencing memo designed to sink the only people he can still hurt (Skilling and Causey) and to make Andy look like a victim are outrageous. He is a fabulous actor and liar, which is why he got away with what he did at Enron right under everyone’s nose.
Tom K. —
Consider the plight of a defendant who is actually innocent and has been falsely indicted. That person may have no genuine information to offer up to the government as a basis of a plea deal. So what should such a person do?
Well, on a rational risk/reward basis, such a person would likely be better off lying about his guilt and concocting incriminating stories about others, rather than defending himself at trial. After all, the resources of the government are immense, the typical jury cannot understand a complex white collar criminal case, the courts clearly favor “cooperators” in their sentencing decisions, and the cost (in time, money, and stress) is overwhelming to the defendant and his family.
Who would have ever believed that we would reach the point at which it takes a nearly heroic level of courage simply for the accused to exercise his constitutional right to defend himself.
Mary,
Your outrage is understandable, but you need to remember that our justice system is not designed to elicit the truth or to punish liars. Rather, it is designed to reward the one who is the best liar once they step inside the courtroon.
Fastow will enroll in the 500 hour drug program and have 12 months lopped off his sentence (to be served in Bastrop). At 85% of what is in reality a 5 year sentence, he will serve just under 4.5 years. While at Ennron, he pocketed in the neighborhood of $80mm, yet he will only surrender about $24mm.
4.5 years in Bastrop to pocket $56mm from his antics at Enron and be free from any additional penalties. Where do I sign up? Obviously, crime pays.
All of this is a load of crap.
Men have literally died for this company and we are watching the man who actually admits to stealing millions upon million of dollars, walk away with 6 years. What has our justice system come to?
This should really show everyone other there how much the government cheated this entire trial. I agree with cmilford. This is a system that awards the best liar. And it is now clear that Mr. Fastow has won that race.
That man gave his testimony knowing that if he preformed correctly, he would get off lighter. It is clear today that the goverment thought he gave a pretty fantastic preformace. One can only hope that if justice is to be served, that man will rot in hell for eternity!
He might as well buy a house on the cape and have it remodeled while he is “away.” That way he can start his life over in a wonderful setting and his neighbors will never know.
What a crock!
Featured on BuzzTracker