FOR IMMEDIATE RELEASE CRM

TUESDAY, SEPTEMBER 26, 2006 (202) 514-2007

WWW.USDOJ.GOV TDD (202) 514-1888

Former Enron Chief Financial Officer

Andrew Fastow
Sentenced to Six Years in Prison for
Conspiracy to
Commit Securities and Wire Fraud
WASHINGTON – Andrew S. Fastow, the former chief financial officer (CFO) of
Enron Corp., was sentenced to six years in prison for his role in the conspiracy that
led to the collapse of Enron Corp. in 2002, Assistant Attorney General Alice S.
Fisher announced today. Fastow was sentenced on two counts of conspiracy to
commit securities and wire fraud before Judge Kenneth Hoyt at U.S. District Court
in Houston, Texas.

Fastow pleaded guilty to two counts of conspiracy on Jan. 14, 2004. Under the terms
of his plea agreement, Fastow agreed to cooperate fully with the government’s
investigation and forfeit more than $20 million.

Fastow admitted that he and other members of Enron’s senior management

conspired in wide-ranging schemes to fraudulently manipulate Enron’s publicly
reported financial results. Fastow also admitted participating in schemes to enrich
himself at the expense of the company and its shareholders. Specifically, Fastow
admitted that he conspired with senior management to cause Enron to enter into
improper transactions with the LJM entities, which were under Fastow’s control. He
also admitted to engaging in self-dealing transactions to enrich himself and others in
connection with the so-called “Southampton transaction,” which involved the $30
million buyout by Enron of an entity called LJM Swap Sub LP, which Fastow
controlled. In engaging in these transactions, Mr. Fastow admitted that he violated
his duty of loyalty and honest services to Enron’s shareholders.

Enron, once the nation’s seventh largest company with stock trading as high as $80
per share in August 1999, filed for bankruptcy protection on Dec. 2, 2001, and its
stock became virtually worthless.

Former Enron Corp. executives Timothy Despain and David Delainey were
sentenced earlier this month. Despain was sentenced on Sept. 15, 2006, to four years
of probation and fined $10,000 on one count of conspiracy to commit securities
fraud. Delainey was sentenced on Sept. 18, 2006, to 30 months in prison on one
count of insider trading.

The ongoing investigation is being conducted by the Enron Task Force, a team of
federal prosecutors supervised by the Justice Department’s Criminal Division and
Special Agents from the FBI and Internal Revenue Service, Criminal Investigation.
The Task Force also has coordinated with and received considerable assistance from
the Securities and Exchange Commission. The Enron Task Force is part of
President Bush’s Corporate Fraud Task Force, created in July 2002 to investigate
allegations of fraud and corruption at U.S. corporations. To date, the efforts of the
Corporate Fraud Task Force have resulted in 1,063 convictions, including the
convictions of 167 corporate presidents and chief executive officers, and 36 chief
financial officers.

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