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Andrew Fastow

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Name  Andrew Fastow
Role  Businessman

Spouse  Lea Fastow (m. 1984)
Parents  Carl Fastow, Joan Fastow
Andrew Fastow ExEnron Financial Chief Andrew Fastow Moved To Halfway House

Full Name  Andrew Stuart Fastow
Born  December 22, 1961 (age 54) (1961-12-22) Washington, D.C., U.S.
Criminal penalty  Six years, followed by two years of probation
Criminal status  Released December 17, 2011
Education  New Providence High School, Northwestern University, Tufts University, Kellogg School of Management
Criminal charge  Conspiracy, Money laundering
Similar People  Jeffrey Skilling, Kenneth Lay, Lou Pai, Richard Causey, Bethany McLean

Andrew fastow convicted enron cfo on ethical issues in business

Andrew Stuart Fastow (born December 22, 1961) is a convicted criminal and businessman who was the chief financial officer of Enron Corporation, an energy trading company based in Houston, Texas, until he was fired shortly before the company declared bankruptcy. Fastow was one of the key figures behind the complex web of off-balance-sheet special purpose entities (limited partnerships which Enron controlled) used to conceal Enron's massive losses in their quarterly balance sheets. By unlawfully maintaining personal stakes in these ostensibly independent ghost-entities, he was able to defraud Enron out of tens of millions of dollars. The U.S. Securities and Exchange Commission subsequently opened an investigation into his and the company's conduct in 2001. Fastow served a six-year prison sentence for charges related to these acts. His wife, Lea Weingarten, also worked at Enron, where she was an assistant treasurer; she pleaded guilty to conspiracy to commit wire fraud, money laundering conspiracy and filing fraudulent income tax returns, and served jail time before early release to a halfway house.


Andrew Fastow Quotes by Andrew Fastow Like Success

Former enron cfo andrew fastow refuses to testify in enron bankruptcy hearing

Early life and education

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Fastow was born in Washington, D.C. He grew up in New Providence, New Jersey, the son of middle class Jewish parents, Carl and Joan Fastow, who worked in retail and merchandising. Fastow graduated from New Providence High School, where he took part in student government, played on the tennis team, and played in the school band. He was the sole student representative on the New Jersey State Board of Education.

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Fastow graduated from Tufts University in 1983 with a B.A. in Economics and Chinese. While there, he met his future wife, Lea Weingarten, daughter of Miriam Hadar Weingarten (a former Miss Israel 1958), whom he married in 1984. Fastow and Weingarten both earned MBAs at Northwestern University and worked for Continental Illinois National Bank and Trust Company in Chicago. Both he and his wife attended Congregation Or Ami, a conservative synagogue in Houston where he taught Hebrew School.

Early career

Andrew Fastow Interview with Former Enron CFO Andrew Fastow Perry Studevent

While at Continental Illinois, Fastow worked on the newly emerging "asset-backed securities". The practice spread across the industry "because it provides an obvious advantage for a bank", noted the Chicago Tribune. "It moves assets off the bank's balance sheet while creating revenue." In 1984, Continental became the largest U.S. bank to fail in American history until the seizure of Washington Mutual in 2008.

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Due to his work at Continental, Fastow was hired in 1990 by Jeffrey Skilling at the Enron Finance Corp. Fastow was named the Chief Financial Officer at Enron in 1998.

Rise in Enron

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Deregulation in the US energy markets in the late 1990s provided Enron with trade opportunities, including buying energy from cheap producers and selling it at markets with floating prices. Andrew Fastow was familiar with the market and knowledgeable in how to play it in Enron's favor. This quickly drew the attention of then chief executive officer of Enron Finance Corp Jeffrey Skilling. Skilling, together with Enron founder Kenneth Lay, was constantly concerned with various ways in which he could keep company stock price up, in spite of the true financial condition of the company.

Fastow designed a complex web of companies that solely did business with Enron, with the dual purpose of raising money for the company, and also hiding its massive losses in their quarterly balance sheets. This effectively allowed Enron's audited balance sheet to appear debt free, while in reality it owed more than 30 billion dollars at the height of its debt. While presented to the outside world as being independent entities, the funds Fastow created were to take write-downs off Enron's books and guaranteed not to lose money. Yet, Fastow himself had a personal financial stake in these funds, either directly or through partners amongst them Michael Kopper. Kopper, Fastow's chief lieutenant, pleaded guilty to taking part in a scam with Fastow that defrauded Enron shareholders of many millions. While defrauding Enron in this way, Fastow was also neglecting basic financial practices such as reporting the "cash on hand" and total liabilities. Fastow pressured some of the largest investment banks in the United States, such as Merrill Lynch, Citibank, and others to invest in his funds, threatening to cause them to lose Enron's future business if they did not. Fastow also reportedly got these firms to fire their analysts who dared to report Enron with negative ratings.

Fastow's approach to hiding losses was so effective that the year before Enron actually declared bankruptcy, a year in which the company was already well on its way to financial collapse, the Enron stock was at an all-time high of $90. Ultimately it would drop down to 40 cents per share, but not before many employees had been told to invest their retirement savings in Enron stock.

Legal problems at Enron

On October 31, 2002, Fastow was indicted by a federal grand jury in Houston, Texas on 78 counts including fraud, money laundering, and conspiracy. On January 14, 2004, he pleaded guilty to two counts of wire and securities fraud, and agreed to serve a ten-year prison sentence. He also agreed to become an informant and cooperate with federal authorities in the prosecutions of other former Enron executives in order to receive a reduced sentence.

Prosecutors were so impressed with his performance that they ultimately lobbied for an even shorter sentence for Fastow. He was finally sentenced to six years at Oakdale Federal Correctional Complex in Oakdale, Louisiana. On May 18, 2011, Fastow was released to a Houston halfway house for the remainder of his sentence.

On May 6, 2004, his wife, Lea Fastow, a former Enron assistant treasurer, pleaded guilty to a tax charge and was sentenced to one year in a federal prison in Houston, and an additional year of supervised release. She was released to a halfway house on July 8, 2005.

Sentencing and incarceration

After entering into a plea agreement with a maximum penalty of 10 years in prison and the forfeiture of US$23.8 million in family assets, on September 26, 2006, Fastow was sentenced to six years, followed by two years of probation. U.S. District Judge Ken Hoyt believed Fastow deserved leniency for his cooperation with the prosecution in several civil and criminal trials involving former Enron employees. Hoyt recommended that Fastow's sentence be served at the low-security Federal Correctional Institution in Bastrop, Texas. Fastow was incarcerated at the Federal Prison Camp near Pollock, Louisiana. Soon after his release on December 16, 2011, he began working as a document review clerk for a law firm in Houston. In March 2012, Fastow spoke on ethics to students at the University of Colorado Boulder Leeds School of Business. In June 2013, Fastow addressed more than 2,000 anti-fraud professionals at the Association of Certified Fraud Examiners' 24th Annual ACFE Global Fraud Conference. In April 2014, Fastow spoke at Miami University in Oxford, Ohio, regarding business ethics. In February 2015, he spoke at the University of St. Thomas, the University of Minnesota, the University of Texas (Austin campus), the University of Houston Bauer College of Business, the University of Southern California's Leventhal School of Accounting, and the University of Missouri School of Accounting. In April 2016 and March 2017, Fastow spoke at the Ivey Business School.


Andrew Fastow Wikipedia

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