After being roundly criticized by former members of the Enron Task Force and ex-Enron employees, prosecutors in Houston indicated they may appeal the six-year prison term given to ex-CFO Andrew Fastow last month (see Daily GPI, Sept. 27).

Fastow originally was indicted in October 2002 (see Daily GPI, Nov. 7, 2002). When he pleaded guilty in January 2004, Fastow had been charged with 98 criminal counts, including conspiracy, fraud, insider trading and money laundering (see Daily GPI, Jan. 15, 2004). The former finance chief agreed to a maximum 10-year prison term and agreed to help in the prosecution of other ex-Enron executives. As part of the plea agreement, Fastow said he would not oppose the 10-year term.

Citing Fastow’s cooperation with the prosecution and the heightened persecution he had faced, U.S. District Judge Kenneth Hoyt in Houston last month sentenced Fastow to six years in prison followed by two years of community service. Hoyt was not legally bound by the plea agreement.

During the sentencing hearing, the government praised Fastow for his cooperation, and it did not object to either written or verbal requests by the defense for Hoyt to impose a shorter prison sentence. Among other things, Fastow was credited with helping to successfully prosecute Enron founder Kenneth Lay and ex-CEO Jeffrey Skilling, who were convicted in May (see Daily GPI, May 26). Lay died unexpectedly in July; Skilling is scheduled to be sentenced on Oct. 23.

In an about face, prosecutors asked the court in a filing for immediate access to a sealed transcript of a Sept. 25 conference held in Hoyt’s chambers with Fastow’s lawyers and members of the Enron Task Force. The conference was held the day before Fastow was sentenced. The Houston Chronicle also has requested the transcript be unsealed.

“The government is currently assessing whether to file a notice of appeal of the sentence imposed on Mr. Fastow, and it cannot make that determination without a copy of the transcript of the pre-sentencing hearing,” the filing noted. Although prosecutors are aware of what occurred in the meeting, filing for a transcript copy is the normal process for an appeal. The government has until Oct. 26 to file a sentencing appeal.

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