Enron Guilty Plea—Richard Causey Update

Updating this morning’s post on Richard Causey, his guilty plea is now official. He has pleaded guilty to one count of securities fraud.^[1] Mr. Causey will serve seven years in prison and forfeit $1.25 million to the US government; if prosecutors feel his cooperation is useful however, they can ask that it be reduced to five years.^[2]

The plea agreement contains a “five-page statement of fact in which [Mr.] Causey admits he and other senior Enron managers made various false public findings and statements,” which were intended “to deceive the investing public.”^[3] Through his attorney, he stressed that he signed a plea agreement, not a cooperation agreement; nonetheless he will work with prosecutors: “to the extent that he has any involvement in any upcoming legal proceedings, he will do one thing: He will tell the truth.”^[4]

Remaining co-defendants Ken Lay and Jeffrey Skilling have received a two-week delay, meaning that their trial will begin on January 30, 2006.

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[1] Kristin Hays, Ex-Enron Accountant Pleads Guilty to Fraud, Associated Press, Dec. 28, 2005.
[2] Id.
[3] Id.
[4] Id.