Overview

Richard Causey served as Chief Accounting Officer (CAO) of Enron Corporation, the executive directly responsible for the company's financial reporting and compliance with accounting standards. He was indicted on six felony charges for his role in disguising Enron's true financial condition from investors, regulators, and the public, a fraud that ultimately destroyed the seventh-largest company in America and wiped out billions in shareholder and employee retirement savings. Causey was originally a co-defendant alongside Chairman Kenneth Lay and CEO Jeffrey Skilling in what the Department of Justice called the most significant corporate fraud prosecution in American history. He initially pleaded not guilty and appeared set to stand trial with his co-defendants. However, on December 28, 2005, just weeks before the trial was scheduled to begin in January 2006, Causey changed his plea to guilty on a single count of securities fraud in exchange for the government dropping the remaining five charges. His decision to plead guilty was a significant blow to the defense because it deprived Lay and Skilling of a co-defendant who could have shared the burden of cross-examination and presented a united front. Causey was sentenced to seven years in federal prison, later reduced to approximately five and a half years. As CAO, Causey had direct knowledge of the accounting manipulations at the heart of Enron's fraud, including the misuse of mark-to-market accounting and the concealment of debt through special purpose entities.

Key Affiliations

Controversies & Concerns

Related Investigations (1)

Known Associates & Connections

Sources & Documentation

2 documented sources from official records, investigations, and reports