Judge Grants Fastow Protection from Civil Lawsuits

HOUSTON -- A federal judge granted protection from civil lawsuits to Andrew Fastow, Enron's former chief financial officer, pending resolution of a 78-count federal indictment alleging he masterminded financial schemes that fueled the bankrupt company's failure, The Associated Press reported Wednesday.

But eight other current or former Enron executives who also remain as defendants in the massive federal shareholder lawsuit in Houston must produce information as the case prepares for trial, U.S. District Judge Melinda Harmon has ruled. She has yet to rule on requests from former chairman Kenneth Lay and former chief executive Jeffrey Skilling to be released from the lawsuit.

Harmon ruled that Fastow would remain a defendant in the suit, but she agreed with his argument that any documents he was compelled to produce for the civil case could be used against him in his pending criminal case.

The plaintiffs, led by the University of California, had argued that if Fastow were released from obligations to supply information pending resolution of his criminal case, it could delay the civil trial for years. Also Ken L. Harrison, another defendant and former chief executive of Portland General Electric, Enron's Pacific Northwest utility, argued protection for Fastow was unfair to other defendants.

-- NYSSCPA.org News Staff

Posted on 03/27/03