Causey Pleads Guilty in Enron

Enron defendant Rick Causey pleaded guilty today as expected. His deal is:

  • plead to one ten year securities fraud count
  • forfeit $1.25 million
  • get a 7 year sentence, which can be reduced to 5 if he cooperates and testifies against Lay and Skilling. His cooperation is not mandatory.

The government says it is not sure it will call Causey as a witness. My translation: they aren't buying a pig in a poke. If Causey can't or won't deliver the goods against Lay and Skilling, they won't call him. They aren't going to give him a chance to provide testimony that is favorable to Lay and Skilling. If they don't call Causey, he'll do the seven years. There's no federal parole, you do 85% of your time. Here's TalkLeft's most recent background on the plea deal.

Update: Here is the statement of Causey filed in Court as to what he did wrong and detailing how he defrauded Enron's investors. He doesn't mention any other Enron chiefs by name, but he refers to them in the plural as "senior Enron management." In another instance, he refers to these management chiefs as "those with whom I conspired." It sounds like he is referring to others besides Andrew Fastow.

I've also read the actual plea agreement, which provides he cannot ask for a lesser sentence of 7 years (or 5 if he cooperates); he cannot ask for a lesser forfeiture; he cannot make any money from books or giving speeches about Enron; his restitution and fine will be taken care of by the $1.25 million forfeiture; he waives his right to appeal and to collaterally attack his sentence; the plea agreement does not bind local and state authorities or civil branches of the Government; and he gives up his right to obtain deferred compensation from Enron.

The money he is forfeiting is in a securities account jointly held by Causey and his wife. She signed a document today acknowledging that she is giving up her interest to the money, and that there is more than $1.25 million in the account.

I'll be discussing the deal tonight at 6:30 MT, 7:30 CT with Sean-Paul of Agonist who is guest-hosting a radio show on San Antonio's KTSA radio. You can listen live by following this link. The call-in number is (800) 299-KTSA.

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    Re: Causey Pleads Guilty in Enron (none / 0) (#1)
    by jimcee on Wed Dec 28, 2005 at 09:05:17 PM EST
    Can't wait to see all these *** go to jail. Too bad that the rats will get off easier then they should. These people are the worst of all scum because they wear an aura of respectability as they steal the nest eggs of unsuspecting people. Just because a thief wears a Seville Row suit doesn't mean they are any less a thief. Good riddence.

    Re: Causey Pleads Guilty in Enron (none / 0) (#2)
    by Talkleft Visitor on Wed Dec 28, 2005 at 10:23:37 PM EST
    Wow, Jeralyn, it's hard to see what he gets out of this deal. He gives up all the money, he can't make any future money from Enron, he can't appeal his sentence (and I'm presuming that the plea is void if the judge refuses to sentence him to only 7 years). Was he facing a bigger fine or substantially more prison time?

    Re: Causey Pleads Guilty in Enron (none / 0) (#3)
    by Talkleft Visitor on Thu Dec 29, 2005 at 06:37:21 AM EST
    As noted in this article, individuals convicted of federal offenses occurring after November 1987 serve approximately 87.9% of their sentences based on the Bureau of Prisons' time credit calculation formula.

    Re: Causey Pleads Guilty in Enron (none / 0) (#4)
    by kdog on Thu Dec 29, 2005 at 08:23:34 AM EST
    Right on jimcee. I have more respect for a stick-up man, at least he has the nerve to rob you face to face. These bastards are thieves and cowards.

    Re: Causey Pleads Guilty in Enron (none / 0) (#5)
    by Talkleft Visitor on Thu Dec 29, 2005 at 09:18:18 AM EST
    He was facing a lot more prison time because he was charged with a lot more counts than just the one he pleaded guilty to.