How rich is Andrew Fastow?
Andrew Fastow Net Worth:
|Birth date:||December 22, 1961|
|Birth place:||Washington, D.C., United States|
|Education:||New Providence High School, Northwestern University, Tufts University, Kellogg School of Management|
|Nationality:||United States of America|
|Spouse:||Lea Fastow (m. 1984)|
Andrew Fastow wiki & biography:
The Honest to Goodness Truth on Fastow
Ex-Enron Andrew Fastow comes with an estimated net worth of $500 thousand. Produced Andrew Stuart Fastow on December 22, 1961 in Washington, D.C., he earned his BA’s in Economics and Chinese from Tufts University and his MBA at Northwestern University. He began his career at Continental Illinois National Bank and Trust Company in Chicago to the asset-backed securities. Continental became the largest U.S. bank to fail in American history in 1984.
In 1990, Fastow was hired by Jeffrey Skilling at Enron Financial Corporation, an energy trading company based in Houston, Texas. He was named the Chief Financial Officer in 1998. In 2001, the U.S. Securities and Exchange Commission inquired Enron and Fastow plus the firm’s conduct. He was indicted by a federal grand jury in Houston on 78 counts including fraud, money laundering, and conspiracy on October 31, 2002. So that you can hide enormous losses, he used limited partnerships which they controlled. Fastow also consented to become an informant and will help in the prosecutions of other former Enron executives while serving a ten-year prison sentence. On September 26, 2006, he was sentenced to six years in prison with two years of probation. On December 16, 2011, he was released from penitentiary. Since June 2012, he was working as a document review clerk in a law firm in Houston.
Fastow was clearly one of the key figures behind the complicated web of off-balance-sheet special purpose entities (limited partnerships which Enron commanded) used to conceal their enormous losses.
Deregulation in the US energy markets in the late 1990s provided Enron with commerce opportunities, including purchasing energy from low-cost manufacturers and selling it at markets with floating costs. Andrew Fastow was familiar with the marketplace and educated in how to play it in Enron’s favor. This fast drew the attention of then chief executive officer of Enron Finance Corp Jeffrey Skilling. Skilling, jointly with Enron founder Kenneth Lay, was always concerned with various ways in which he could keep firm stock price up, despite the true financial condition of the organization. Fastow designed a complex web of firms that just did business with Enron, with the dual purpose of raising money for the firm, and also concealing its huge losses within their quarterly balance sheets. This effectively enabled 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 cash. Yet, Fastow himself had a personal financial stake in these types of funds, either directly or through a partner. Fastow made tens of countless dollars defrauding Enron this way, while also disregarding fundamental fiscal practices including reporting the ‘cash on hand’ and total liabilities. Fastow demanded some of the biggest investment banks in the United States, for example Merrill Lynch, Citibank, yet other people to invest in his funds, threatening to cause them to lose Enron’s future business if they did not. Fastow also allegedly got these companies to fire their analysts who dared to report Enron with negative ratings.