A “mountain of evidence” uncovered by the U.S. Attorney’s Office in Houston may lead to more indictments from Project Alpha, a financial scheme that so far has netted more than $3 million in fines for Dynegy Inc. and two guilty pleas by former executives.

Two defendants in the case, Helen Christine Sharkey, 31, and Gene Shannon Foster, 44, pleaded guilty to one conspiracy charge last week (see Daily GPI, Aug. 6). Sharkey and Foster’s plea agreement mentions “unindicted co-conspirators,” but so far, few details have emerged as to who else might be under investigation.

A third defendant, Jamie Olis, did not withdraw his plea of not guilty, and his lawyer has indicated that Olis will “absolutely” not take a plea.

Terry Wayne Yates, Olis’ attorney, said he did not think the plea agreements would damage his client’s defense. “I don’t think it’s going to hurt. I think the defendants that pled made a decision that was in their best interests,” he said.

Olis, whose trial is now set for Nov. 3, faces up to 35 years in prison and $2 million in fines on charges of conspiracy to commit securities fraud, securities fraud, mail fraud and wire fraud for his alleged role in the Project Alpha scheme.

Olis’ lawyers have agreed not to disclose information from documents that prosecutors plan to use as part of their case against him. Prosecutors told Lake they feared the information could be given to individuals who are still under investigation.

When discussing possible trial dates for Olis last Friday, U.S. District Judge Sim Lake asked prosecutors if they would file a superseding indictment against Olis or would expand the original indictment to include more defendants and/or charges.

“Yes, we are, your honor,” answered Assistant U.S. Attorney Jimmy Sledge. “There is a mountain of evidence.” There was no information about when any further indictments could be unveiled.

A Fort Worth-based Securities and Exchange Commission (SEC) official had indicated last June that investigations were ongoing into “others” who may have been involved in the Project Alpha financing scheme. Harold Degenhardt, an SEC district administrator, indicated then that “further action” was likely after the three former Dynegy employees were first charged (see Daily GPI, June 13).

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