CAUSEY
HOUSTON, Texas (AP):
A FORMER top accountant at Enron Corp. sealed his plea deal with prosecutors, becoming a key potential witness in the upcoming fraud trial of former CEOs Kenneth Lay and Jeffrey Skilling.
Lay and Skilling were granted two extra weeks to adjust to the setback before their much antici-pated trial, the last and biggest of a string of corporate scandal cases, starts at the end of January.
The accountant, Richard Causey, pleaded guilty to securities fraud Wednesday in return for a seven-year prison term - which could be shortened to five years if prosecutors are satisfied with his cooperation in the trial. He also must forfeit US$1.25 million to the government, according to the plea deal.
Causey's arrange-ment included a five-page statement of fact in which he admitted that he and other senior Enron managers made various false public filings and statements.
The deal leaves Lay and Skilling with another opponent rather than an ally who has been part of their united defence front since the trio was first indicted last year.
