I Bet a Bank Robber Gets WAY More Time in Jail

It was reported today that Andy Fastow, the architect of the Enron fraud, has only received 6 years in jail for his crimes. This can of course be due to mitigating circumstances, namely Fastow’s willingness to help the government with its case against Ken Lay and Jeff Skilling. To me this, this is the height of absurdity. After having read Conspiracy of Fools by Kurt Eichenwald, one can see that it was Fastow was responsible for initiating most of Enron’s special purpose entities (SPEs are vehicles that were used by Enron to remove debt from its balance sheet). If anything, Lay and Skilling were simply incompetent and did not do enough to reign in Fastow, but Fastow COMMITTED THE CRIMES! For someone that has done so much damage, whether it was the loss of people’s jobs, money and the loss of prestige to the accounting profession, his sentence should have been much harsher.



4 Responses to I Bet a Bank Robber Gets WAY More Time in Jail

  1. Carlos says:

    I definitely agree. By the way, great job, I am glad someone is blogging about being a big 4 accountant. I’m a student right now, so I am very interested on what life is like after school.

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  3. Edmund Murphy says:

    I agree that Fastow deserves a longer sentence, like 20+ years. But in fairness the US prosecuters, they may have needed to cut a deal with him to get enough evidence to put away Lay and Skilling.

  4. Yet another example of the powerful getting off lightly. The enron disaster was on such a scale that I completely agree with your diagnosis of a poor punishment.

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