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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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