"Status is from the outside looking in. She had hoped to serve her time at a minimum-security prison camp for women in Bryan, about 90 miles northwest of Houston. This move allowed Enron to mark-to-market a portion of a related gas contract and post a $65 million mark-to-market income for the second half of 1999. Kristen Hays, The Associated Press — Jan 14th, 2004. He hugged his wife Lea, who also worked at Enron, and went to jail for a year, was handcuffed and had chains put around his waist and ankles. She could have worn khaki shorts and T-shirts, played softball, walked on an outdoor track, or perhaps tended one of the complex's vegetable and flower gardens. Andrew Stuart Fastow (born December 22, 1961) is an American businessman and convicted criminal who was the chief financial officer of Enron Corporation, an energy trading company based in Houston, Texas, until he was fired shortly before the company declared bankruptcy.The U.S. Securities and Exchange Commission subsequently opened an investigation into his and the company's conduct in … Andrew Fastow Plots an Afterlife The former Enron CFO’s apology tour comes to Houston. For his personal life, it is known that Andrew has been married to Lea Weingarten since 1984, who he met while attending Tufts University; the two graduated with MBAs together. In 1999, the early days of the Dot-com boom, Enron invested in a Broadband Internet start-up, Rhythms NetConnections. In what was essentially the second version of the same idea, Fastow proposed in October 1999 to Enron's finance Board the creation of LJM2 Co-Investment L.P. Once again, Fastow would act as general director of a much larger private equity fund that would be funded with $200 million of institutional funds. These notes, not surprisingly, were purchased by LJM2 for $32.4 million. Andrew Fastow, also 42, pleaded guilty to the fraud in January but had refused to help the U.S. investigation of his company before his wife was indicted in May 2003. Why is he fundraising for it? LJM, which stands for Lea, Jeffrey, Matthew, the names of Andrew Fastow's wife and children, was a company created in 1999 by Enron's CFO, Andrew Fastow, to buy Enron's poorly performing assets and bolster Enron's financial statements. Lea Fastow, wife of former Enron Corp. finance chief Andrew Fastow, leaves the federal courthouse after she withdrew a plea agreement Wednesday, April 7, 2004, in Houston. Businesspersonindustry is full of talent. [3] Later, Enron mysteriously bought back the stake for a loss of approximately $3 million, despite the fact that the plant's construction had bogged down even more in the intervening time. Enron had been struggling to find a buyer by year's end in order to avoid consolidating the asset on its year-end 10-K. Lea Fastow. He was the chief financial officer of Texas-based energy trading company Enron Corporation until he was expelled by the company shortly before it declared bankruptcy. But that life is a world away from the federal detention center, a gray, 11-story building where the only chance to go outside is during brief and rare outings on the roof. She is expected to enter the guilty plea before Judge David Hittner at federal court in Houston later today. Also at this meeting, Fastow introduced the structure of LJM, stated he would collect certain "management fees", and got Lay to approve the partnership pursuant to Enron's Code of Conduct (Fastow's participation as the managing partner of LJM1 was not judged to "adversely affect the interests of Enron"). LJM, which stands for Lea, Jeffrey, Matthew, the names of Andrew Fastow's wife and children, was a company created in 1999 by Enron 's CFO, Andrew Fastow, to buy Enron's poorly performing assets and bolster Enron's financial statements. Jeff McMahon, Enron's then treasurer, initially refused to sign the agreement stating: "There were no economics run to demonstrate this investment makes sense. He rose to CFO in 1998, a year after his wife, who rose to assistant treasurer, resigned to be a full-time mother to their two young sons. Lea Fastow, the wife of former Enron chief financial officer Andrew Fastow, is to go to jail for a year after pleading guilty to a tax charge misdemeanour. [1] At a board meeting on June 28, Fastow announced that he would serve as the general partner and would invest $1 million. "Once you're in that environment, you have to decide, 'Am I going to sink or swim?' The more complex the rules, the more opportunity. Now he runs a consulting service in Salt Lake City, helping other federal prisoners prepare for life on the inside. In April 2000, owing to the decreasing value of Rhythms stock and a calculated 68% chance that the hedge would default, Enron unwound the transaction. Lea Fastow, wife of former Enron Corp. finance chief Andrew Fastow, left federal prison early Monday morning en route to a halfway house to serve the … Since the loans had now supposedly been sold off without resource to Enron, this allowed Enron to claim that it was no longer subject to credit exposure - improving its financial statements. Mr. Fastow occasionally speaks on business ethics, doing so as recently as last week. She was sent there after she refused to surrender her research for a book she was writing about a former bookie charged with arranging his socialite wife's death. The wife of Enron's former finance chief surrendered on Monday to begin a year in prison. LJM (Lea Jeffrey Michael) refers to the names of Andrew Fastow’s wife and children and a company created by Fastow, the CFO for Enron. Both are cooperating in the prosecution of other former Enron executives. Even before her marriage to Andrew Fastow, Lea Weingarten was well-to-do, an heiress to a grocery and real-estate fortune amassed by one of Houston's old-line families. Despite this concern and the obvious conflict of interest involved in having Fastow run it, the accounting firm Arthur Andersen approved it. Andy Fastow. Fastow remained defiant in May 2003 when the government obtained an indictment against his wife, Lea, for conspiracy and tax crimes for helping him hide ill-gotten gains. [5], This article is about the financial company. Fastow was sentenced to serve 12 months in prison. First, Enron transferred with severe locking restrictions 3.4 million shares of Enron stock worth $276 million at the time to LJM1 at a reduced price of $168 million. Then, LJM1 capitalized one of its subsidiaries, LJM Swap-Sub, with $80 million of its restricted shares and $3.75 million in cash. She said Lea Fastow should have few problems if she keeps to herself and respects others. Andrew S. Fastow. Yet, as Fastow admits, would not prevent the next Enron. Andrew Fastow : biography December 22, 1961 – Andrew Stuart Fastow (born December 22, 1961) is an American businessman who served as the chief financial officer of Enron Corporation, an energy trading company based in Houston, Texas, until the U.S. Securities and Exchange Commission opened an investigation into his and the company’s conduct in 2001. The Enron shares were, however, still under contractual restrictions and should have been devalued to around $161 million. Former Enron finance chief Andrew Fastow and his wife have agreed to plead guilty for their roles in a massive accounting scandal that brought down the US energy giant in 2001, sources have said. Andrew Fastow was born in Washington D.C, United States on Friday, December 22, 1961 (Baby Boomers Generation). Andrew Stuart Fastow (born December 22, 1961) is a convicted criminal and businessman who was the chief financial officer of Enron Corporation, an energy trading company based in Houston, Texas, until he was fired shortly before the company declared bankruptcy.Fastow was one of the key figures behind the complex web of off-balance-sheet special purpose entities (limited partnerships … On January 14, 2004, he pleaded guilty to two counts of wire and securities fraud, and agreed to serve a ten-year prison sentence. In addition, former Enron Assistant Treasurer Lea W. Fastow, Andrew Fastow's wife, has agreed to plead guilty to filing a false joint tax return for 2000, in which she failed to report income from a partnership related to Enron. The Sydney Morning Herald. As per agreement, Swap-Sub took from Enron its $207 million in Rhythms stock, but instead returned unrestricted Enron stock supposedly valued at $234 million. The wife of former Enron Corp. finance chief Andrew Fastow left a federal prison in Houston early Monday to serve the last month of her one-year sentence for … She will wear prison-issue tan uniforms, and her mail could be read first by prison staff. However, a lock-up agreement forced Enron to hold its shares for six months after the IPO. When Andrew Fastow pleaded guilty in January, he agreed to surrender $23.8 million in cash and property, including two vacation homes in Galveston and Vermont. The Fastows' guilty pleas were a breakthrough in the two and a half year long investigation into the scandal that led to the energy giant's collapse. Lea Fastow, a real estate and grocery heiress, reported to the federal lockup in downtown Houston, to serve the sentence for her misdemeanor conviction of signing a fraudulent tax return to help her husband, Andrew, hide ill-gotten income from schemes that fueled the energy company's crash. After Rhythm went public, shares skyrocketed and Enron found itself with $300 million worth of Rhythm stock in May 1999. And for sure, you will name Andrew Fastow as leading personnel in this industry. "The quicker she just kind of keeps her head down and does her time and does what she can to help those around her, the better off she'll be. The more complex the rules, the more opportunity. LJM, along with Chewco, played a major role in the downfall of Enron (see Timeline of the Enron scandal) and was the primary vehicle by which Fastow and others siphoned off at least $42 million while ruining Enron. Novak said the prisons bureau has made efforts to limit exposure of minimum-security prisoners to inmates known to be more dangerous. Andrew Stuart Fastow, the former chief financial officer of Enron Corp., is the self-described architect of the various scams that reduced the seventh-largest company in America to a smoking ruin. Redeeming Creature. Mr. Fastow occasionally speaks on business ethics, doing so as recently as last week. Ben DeSoto/Staff Show More Show Less 20 of 30 7/12/04-Lea Fastow, (center) wife of ex-Enron CFO Andrew Fastow, glances up at the Federal Detention Center … In mid-1999, Enron owned a 65% stake in a Brazilian company, EPE, building a natural gas power plant in Cuiaba, Brazil. Owing to Enron's mark-to-market policy, Skilling's worries about Rhythm's volatility led to LJM1 carrying forth a convoluted transaction. With Thursday's grand jury indictment, 19 people have been charged … Among the ventures he is … The former CFO of Enron has already completed his six-year prison sentence. The former CFO of Enron has already completed his six-year prison sentence. Former Enron CEO Jeffrey Skilling is looking at ways to return to the energy business, according to two sources familiar with his activities. Thus, Enron posted a slight profit instead of a true $70 million loss.[3]. He is 58 years old and is a Capricorn. Here’s a quote from one of his talks: “There are people who look at the rules and find ways to structure around them. Again, the question of how Fastow's dual role as Enron's CFO and LJM2's general director was not seen as a conflict of interest was easily laid aside by the board of directors.[1]. 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