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Friday   8 /23 /2002


Enron probe aggressive

 U.S. Justice Department officials prosecuting the Enron Corp. case are using aggressive tactics normally employed against drug dealers to seize bank accounts and go after a new mansion owned by the company’s former chief financial officer.

 As part of a plea agreement formalized Wednesday with Michael J. Kopper, a key Enron insider, the government sought to seize US$22.1 million in bank accounts that prosecutors alleged contained money from illegal Enron deals largely organized by Kopper and Andrew S. Fastow, Enron’s former financial officer.

 The amount included nearly US$12.8 million held by Fastow, his family or his family’s foundation, plus US$9.3 million more from other former Enron workers. In addition, Fastow’s new, US$2.6 million, five-bedroom home under construction in Houston also could be seized. The collected funds would be used to repay investors defrauded by Enron, officials said. Details of that distribution were still being worked out, although the amount represents just a fraction of the amount lost by investors. “The money would be put in a court registry awaiting a plan of distribution, and that will happen some time in the future,” said Stephen Cutler, head of enforcement at the Securities and Exchange Commission.Fastow, who left Enron in October 2001, has not been indicted or charged with any crime. He has declined to testify before Congress.

 A spokesman for Fastow, Gordon Andrew, said Fastow would “respond at the appropriate time and in the appropriate forum.” Fastow’s lawyer, David Boies, was in Africa and could not be reached for comment.

 The unusual forfeiture request, filed in U.S. District Court in Houston, came as part of Wednesday’s plea agreement with Kopper, once a trusted aide to Fastow. (SD-Agencies)

  

  

  

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