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Fastows plead guilty in Enron case

HOUSTON, Jan. 14 (UPI) -- Ex-Enron Chief Financial Officer Andrew Fastow pleaded guilty Wednesday in Houston to criminal charges and agreed to cooperate with federal prosecutors.

Fastow, the highest-level executive charged in the Enron investigation, agreed to aid prosecutors in exchange for a 10-year prison sentence. His testimony could implicate more senior executives at the Houston energy company that collapsed two years ago.

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"The Andrew Fastow plea and cooperation agreement opens wide a window into the fraudulent practices of Enron's senior management," said Assistant Attorney General Christopher A. Wray in a statement issued in Washington.

Fastow, 42, pleaded guilty to two counts of conspiracy to commit securities and wire fraud. The remaining 96 charges against him will be dismissed if prosecutors are satisfied with his cooperation.

As part of the deal Fastow also will forfeit more than $29 million, according to federal prosecutors.

Lea Fastow, his wife and the former assistant Enron treasurer, pleaded guilty to filing a false joint tax return for 2000 in which she failed to report income from an Enron-related parternership. She will serve a five-month prison sentence.

Charges have been filed against 26 defendants so far in the Enron investigation, including 19 former Enron executives. Seven people and Arthur Andersen LLP have been convicted as a result of the continuing federal investigation.

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