The former corporate secretary for Enron Corp. is expected to agree to settle charges with the Securities and Exchange Commission (SEC) and to help federal prosecutors in their investigation of other company executives, the Wall Street Journal reported Wednesday.

Paula Rieker was a top official in Enron’s investor relations unit and apparently faces civil and criminal charges related to Enron’s demise, the newspaper said. Rieker apparently is expected to settle SEC charges for insider trading and making false statements. Criminal charges also are expected against Rieker as part of an apparent cooperation agreement with prosecutors.

Rieker would be a “potentially strong witness” against former CEO Jeffrey Skilling and Richard Causey, former chief accounting officer. Both men pleaded not guilty and await trial after they were indicted earlier this year on fraud charges and manipulation (see Daily GPI, Feb. 20). “Given her senior positions at Enron, she also could be helpful in the government’s continuing criminal probe of former Chairman Kenneth Lay,” the Journal reported.

Investigators have been looking into Lay’s actions in the final six months of 2001 as Enron disintegrated. Lay has not been charged with any crimes and has denied any wrongdoing, but investigators want to determine if he lied to the public about Enron’s condition.

Already cooperating with the investigation is former CFO Andrew Fastow, and his cooperation apparently led to the indictment of Skilling, who was his boss.

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