Enron — Richard Causey: accounting role and case outcomes

analysisCausey signed Enron’s November 2001 restatement disclosure as executive vice president and chief accounting officer. The board also assigned him a transaction-review role for LJM. The Powers inquiry criticised incomplete identification of LJM dealings and information supplied to the Audit Committee, while recognising the significance of Andersen’s concurrence in many accounting judgments. ^{1 2}

analysisHe pleaded guilty to securities fraud in December 2005. The 66-month sentence imposed in November 2006 was the actual outcome, rather than the earlier plea’s seven-year provision. The criminal announcement described forfeiture, a fine and abandonment of deferred-compensation claims; the SEC’s separate consent judgment later added permanent officer-and-director and accounting-practice restrictions. ^{3 4 5}