Tee It Up

12 January 2004


Judge Prevents Lea Fastow Plea Bargain in Enron Mess

Once again, the ego of a judge and the delusion that the judiciary is non-political have combined to prevent the business of the people from getting done. Lea Fastow, former assistant treasurer of bankrupt Enron, and her lawyers had made a deal with the prosecution in her case. Judge David Hittner decided that the deal wasn't good enough and that he needed to interfere. Now, there's no deal, the people of Texas will get to pay for a trail, and the case against those higher up at Enron will be tougher to make.

The Enron situation is a mess, but Ms. Fastow is married to former CFO of Enron Andrew Fastow. Both are under indictment, and if anyone is in a position to know where the figurative bodies are buried, they are. The deal would have Mrs. Fastow plead guilty to one charge of tax evasion, and she would serve 5 months starting immediately. Her husband's 10-year plea deal hinges on her bargain coming through. Part of the issue are their two children, who might have both parents in jail if Mrs. Fastow's term exceeds 5 months (should their parents plead guilty, the children face being raised by felons -- perhaps a matter for social services).

Judge Hittner wants to take two months to investigate the situation to determine whether a sentence of 10 to 16 months is more appropriate. His Honor, therefore, told Mrs. Fastow and her lawyers to plead guilty by Friday noon of last week, and leave the sentence as an open question, or go to trial. Any juvenile delinquent could inform the judge that without a guaranteed sentence, there isn't much point to a deal. The judge said in effect, "Do it my way or tee up for trial," according to defense attorney David Berg. So, tee it up they shall.

A plea bargain, of course, sticks in the throats of many, negotiating justice away it has been called. However, as a practical matter, an assistant treasurer would not be in a position to shatter Enron -- at most, she might have aided and abetted those who did. Those are the people who need to go to jail, and she and her husband could be instrumental in that process. Although it would be nice to see them go away for years if guilty, settling for a few months in her case to get the really big crooks is a small price to pay.

Here is the nightmare scenario that Judge Hittner now has made possible. Mrs. Fastow beats the rap in a jury trial. Her husband and she plead the Fifth Amendment until the cows come home in the trials of anyone else from Enron. And the other allegedly guilty parties go free due to lack of evidence. All because the judge decided he needed more discretion -- or TV time.

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