Federal prosecutors plan to bring criminal charges as early as Wednesday against Andrew S. Fastow, Enron Corp.'s former chief financial officer, a law-enforcement source said Tuesday.
Fastow, said to be the financial mastermind behind Enron's complex web of off-the-books partnerships used to hide $1 billion in debt from shareholders and federal regulators, is the most prominent figure targeted so far by the U.S. Justice Department.
In August, a once-trusted Fastow aide, Michael Kopper, pleaded guilty to money laundering and conspiracy to commit wire fraud.
Kopper said in federal court in Houston that it was Fastow who provided loans for investments, received kickbacks or negotiated deals that benefited the partnerships rather than Enron.
The law-enforcement source, speaking only on condition of anonymity, did not specify the nature of the anticipated charges against Fastow or whether they would take the form of a grand jury indictment or a criminal complaint by Justice that would present some of the government's evidence against him.
Fastow's spokesman, Gordon Andrew, declined to comment.
The office of his attorney, John Keker, referred calls to Andrew.
Fastow, who invoked the Fifth Amendment and refused to testify before Congress earlier this year, reaped an estimated $30 million from the partnerships.
He emerged as a central figure in the Enron scandal after the big energy-trading company, with ties to President Bush and members of his administration, collapsed into bankruptcy last December.
Enron's stunning downfall, bringing the retirement savings of employees with it and wiping out the investments of pension funds and individuals nationwide, became the first of several corporate accounting scandals at big companies that rocked investors' confidence and the stock market.
Enron's board approved the partnerships, as well as a waiver from conflict-of-interest rules for Fastow.
The expected action against Fastow raises the question of what he would say about former Enron chief executive Jeffrey Skilling and former chairman Kenneth Lay if Fastow were to begin cooperating with the government at some point.
Former company insiders say it was Fastow's aggressive and inventive approach to structuring deals that appealed to Skilling.
In 1999, when CFO magazine gave Fastow its "Excellence Award for Capital Structure," Skilling told the publication: "Andy has the intelligence and the youthful exuberance to think in new ways."
Kopper said that he funneled some money from the partnerships back to Fastow and his family as well as paid the investors.
The day after Kopper entered his plea, a federal judge froze more than $23 million in bank and brokerage accounts held by Fastow and his wife, Lea, his family foundation, his brother Peter, several former Enron employees and two holding companies.
The Justice Department alleged that the accounts contain money from illegal Enron deals largely organized by Fastow and Kopper.
The prosecutors also are going after Fastow's newly built $2.6 million home in Houston's wealthiest neighborhood, River Oaks, where Skilling and Lay live.
Associated Press Writer Kristen Hays in Houston contributed to this report.1>
Fastow, said to be the financial mastermind behind Enron's complex web of off-the-books partnerships used to hide $1 billion in debt from shareholders and federal regulators, is the most prominent figure targeted so far by the U.S. Justice Department.
In August, a once-trusted Fastow aide, Michael Kopper, pleaded guilty to money laundering and conspiracy to commit wire fraud.
Kopper said in federal court in Houston that it was Fastow who provided loans for investments, received kickbacks or negotiated deals that benefited the partnerships rather than Enron.
The law-enforcement source, speaking only on condition of anonymity, did not specify the nature of the anticipated charges against Fastow or whether they would take the form of a grand jury indictment or a criminal complaint by Justice that would present some of the government's evidence against him.
Fastow's spokesman, Gordon Andrew, declined to comment.
The office of his attorney, John Keker, referred calls to Andrew.
Fastow, who invoked the Fifth Amendment and refused to testify before Congress earlier this year, reaped an estimated $30 million from the partnerships.
He emerged as a central figure in the Enron scandal after the big energy-trading company, with ties to President Bush and members of his administration, collapsed into bankruptcy last December.
Enron's stunning downfall, bringing the retirement savings of employees with it and wiping out the investments of pension funds and individuals nationwide, became the first of several corporate accounting scandals at big companies that rocked investors' confidence and the stock market.
Enron's board approved the partnerships, as well as a waiver from conflict-of-interest rules for Fastow.
The expected action against Fastow raises the question of what he would say about former Enron chief executive Jeffrey Skilling and former chairman Kenneth Lay if Fastow were to begin cooperating with the government at some point.
Former company insiders say it was Fastow's aggressive and inventive approach to structuring deals that appealed to Skilling.
In 1999, when CFO magazine gave Fastow its "Excellence Award for Capital Structure," Skilling told the publication: "Andy has the intelligence and the youthful exuberance to think in new ways."
Kopper said that he funneled some money from the partnerships back to Fastow and his family as well as paid the investors.
The day after Kopper entered his plea, a federal judge froze more than $23 million in bank and brokerage accounts held by Fastow and his wife, Lea, his family foundation, his brother Peter, several former Enron employees and two holding companies.
The Justice Department alleged that the accounts contain money from illegal Enron deals largely organized by Fastow and Kopper.
The prosecutors also are going after Fastow's newly built $2.6 million home in Houston's wealthiest neighborhood, River Oaks, where Skilling and Lay live.
Associated Press Writer Kristen Hays in Houston contributed to this report.1>