Who Was Andrew Fastow at Enron?
Andrew Fastow was the chief financial officer of Enron, the U.S. energy trading company that collapsed in 2001. He managed complex partnerships and deals that concealed debt and inflated earnings. His role made him a central figure in the Enron financial scandal.
How Did Fastow Contribute to Enron's Collapse?
Fastow created off-balance-sheet entities such as LJM and Chewco to hide Enron's losses. These structures allowed the company to report misleading profits while he earned large fees. The deception eroded investor trust and led to Enron's bankruptcy in December 2001.
Legal Outcome and Broader Impact
Fastow pleaded guilty to conspiracy and was sentenced to prison, later cooperating with prosecutors. The scandal prompted stricter corporate governance rules, including the Sarbanes-Oxley Act. For more background, see the U.S. Securities and Exchange Commission overview at https://www.sec.gov/spotlight/enron.
