Two former Dynegy Inc. employees are expected to change their pleas in Houston federal court Tuesday. The former Dynegy employees, who had initially entered not guilty pleas with another former employee who was indicted, were involved in the company’s Project Alpha transaction that overstated the company’s cash flow two years ago.

Helen C. Sharkey, 31, and Gene S. Foster, 44, are scheduled to be in court on Tuesday. They were arrested and charged with conspiracy, securities fraud, wire fraud and mail fraud for their alleged roles in the Alpha transaction, along with Jamie Olis, 37. All three had pleaded innocent (see Daily GPI, July 2).

Sharkey and Foster are expected to be re-arraigned, which indicates a change of plea, according to a spokesman for the U.S. Attorney for the Southern District of Texas. Olis is not expected in court. The attorney’s office said the change of plea would not be known until the hearing.

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