A federal magistrate judge in Houston Thursday signed warrants to freeze some accounts of former Enron CFO Andrew Fastow, family and friends, according to The Houston Chronicle. This action came one day after former Enron colleague Michael Kopper pleaded guilty to criminal conspiracy charges in a Houston court, naming Fastow as a co-conspirator in the scheme to defraud Enron of millions of dollars (see Daily GPI, Aug. 22).

The Fastow accounts were frozen after “someone” had tried to move millions from one of the brokerage accounts targeted for seizure by the Justice Department, sources told the newspaper.

While the warrants signed by U.S. Magistrate Calvin Botley were sealed, sources said the scope of the planned seizures were broader than initially revealed in U.S. District Court in Houston Wednesday, when Kopper pleaded guilty to twin counts of conspiracy to commit wire fraud and money laundering, it reported. He also has agreed to surrender approximately $12 million of “criminally derived” funds and assets. Kopper is scheduled to be sentenced next April 4.

The warrants effectively block access to the accounts or “restrain the use” of other assets the federal government says were acquired with illegally-obtained money, according to the Chronicle.

“I have no knowledge one way or the other” of the warrants, an aide to Botley told NGI on Friday.

In his plea agreement with the Justice Department and in court last Wednesday, Kopper admitted he and Fastow defrauded Enron of millions of dollars by establishing and running questionable off-the-book partnerships, such as Chewco, RADR and Southampton. Many 401(k) investors lost their life-savings as a result of the partnership schemes, which were intended to boost Enron profits and hide debt.

The Justice Department in documents identified for seizure about $23.5 million in bank accounts controlled by several former Enron executives and others, monies that it said were obtained through illegal acts traced back to Kopper.

This included about $14.2 million held in bank accounts of Fastow and his wife, the Fastow Family Foundation and his brother, Peter Fastow. Also subject to forfeiture is a house owned by Fastow and his wife in the posh River Oaks’ section of Houston, according to the documents.

Other bank/brokerage accounts targeted for seizure by the Justice Department were: former Enron Treasurer Ben Glisan ($916,137); Kristina Mordaunt, one-time managing director of legal ($1,674,744); Kathy Lynn, vice president of finance ($218,326); Anne Yeager, manager of finance ($45,000); Capital Growth Holding ($6,370,000); and Capital GP Holding ($130,000).

The maximum prison term facing Kopper, 37, would be five years for the felony charge of wire fraud and 10 years for money laundering, plus penalties ranging from $500,000 to $750,000. However, federal prosecutors indicated they will recommend a lighter sentence to the judge, provided he continues to cooperate with the agencies in building cases against other ex-Enron executives.

Kopper could be released in as little as three years, according to the cooperation agreement he signed with Justice. He was released on $5 million bail after his appearance in court Wednesday.

Also listed for forfeiture were the Houston home (property) of Mordaunt and her husband, Robert V. Ulsh Jr., and a 2000 Lexus automobile belonging to Ulsh.

If any of the monies or assets cannot be located, have been transferred or sold, have been placed beyond the jurisdiction of the court, have been “substantially diminished in value,” or have been “commingled with other property,” then Kopper will be required to surrender any interest he has in “other property” to the federal government under his plea agreement.

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