Postgame Analysis of Fastow’s Sentencing

From WSJ Law blog:

The Washington Post has more on the reduced prison sentence for Andy Fastow. Last week Judge Kenneth Hoyt granted some mercy to the former Enron CFO by sentencing him to six years in prison when his 2004 plea deal had called for a maxiumum of ten years in the clinker. According to the WaPo, Fastow could spend only 3 1/2 years in prison if he gets credit for completing a drug-treatment program and for good behavior. Here’s a sampling of Fastow fallout:

Enron Workers: Rod Jordan, a former Enron employee, told the Post the reduction “was a slap in the face to employees.” Jordan expressed surprise over the reduced sentence and says that he and other former workers didn’t attend or speak out at Fastow’s sentencing because “they thought it was a done deal,” referring to the 10-year term.

Daniel Petrocelli: In an email to the Post, Jeffrey Skilling lawyer Daniel Petrocelli wrote, “What is disturbing is that in the trial against Mr. Skilling, Fastow and the prosecutors represented to the jury that Fastow would serve a minimum of 10 years.” He added: “Now, with the trial over, they come into court and argue for a substantially lesser sentence.”

David Delainey’s lawyer: A lawyer for former Enron executive David Delainey, who cooperated with the feds but only had his sentence reduced three month to 2 1/2 years, thinks his client got a raw deal. “The message from the court was clear,” said John Dowd of Akin Gump in Washington, D.C. “If you square your account with the law early, accept the consequences, fully cooperate for three years and receive the enthusiastic support of the government at sentencing: Tough luck; you get a cut of three months. If you fight the truth and get others involved in crime, and receive no support from the government, then you receive the mercy of the court and get a cut of four years off what you agreed to.”

Sympathy for Fastow:“He really has transformed himself from somebody who was vilified to someone who seemed almost sympathetic on the stand and who genuinely accepted responsibility for his actions,” said Philip Hilder, a Houston defense lawyer who represented several witnesses in the Enron investigation. “I wish more judges would view defendants as individuals.”