View Full Version : Article: After Enron, a Sunless Year in a Tiny Cell


cjjack
06-20-2004, 06:21 AM
After Enron, a Sunless Year in a Tiny Cell

June 20, 2004
By KATE MURPHY





Houston

JUST two years ago, Lea Fastow, former assistant treasurer
of the Enron Corporation, was anticipating a move into a
12,000-square-foot house that she and her husband were
having built in the exclusive River Oaks section of this
city. It would have six fireplaces and Italian flagstone
flooring, and would cost $3.9 million.

Instead, on July 12, she will move into the austere,
high-rise Federal Detention Center downtown. A closet-size
cell there will be her home while she serves a one-year
sentence after pleading guilty last month to tax evasion.

She and her husband, Andrew S. Fastow, had to sell their
River Oaks house after the implosion of Enron left both of
them in a legal morass. Mr. Fastow, Enron's former chief
financial officer, will also go to jail. As part of a plea
bargain agreement, he could serve up to 10 years for
concealing Enron's debt and inflating its profits while
making millions for himself.

Besides dealing with the dangers and indignities of prison
life - from the threat of violence and routine strip
searches to scratchy toilet paper and narrow bunk beds -
Mrs. Fastow, 42, is likely to find that the mixed-sex,
highly secure detention center will be anything but the
kind of pastoral prison camp that many people still
associate with white-collar criminals. And, former convicts
say, her time will be more difficult because she is a
woman, white and wealthy.

That is grim news for Martha Stewart, another well-known
woman accused of a white-collar crime, unless her
conviction is overturned on appeal or she has more luck
than Mrs. Fastow did in persuading a federal judge to
recommend that she be assigned to a low-security,
women-only prison.

"Let's be honest: jails are racist, sexist and homophobic
places," said Ray Hill, who served eight years in prison
for burglary and is now a consultant to people facing time
behind bars. He is also the host of "The Prison Show," a
call-in radio program for inmates and their families in
southeast Texas. When white people are a minority in
prisons, he added, they often suffer the most abuse. Being
rich only makes things worse.

Gabriela Reza, a Hispanic woman who served 4 months of a
10-month drug-possession sentence at the Houston center
last year, agreed. "You hate to say it, but just like on
the outside, people tend to help people who are like them -
and Hispanics and blacks are the majority in there," she
said.

After Mrs. Fastow surrenders to the authorities, which she
is scheduled to do at 2 p.m. on July 12, she will be
assigned to an 8-by-10-foot cell in the 11-story, 1,100-bed
prison, which houses people serving relatively short
sentences or awaiting trial on a variety of charges,
including violent offenses.

She will be locked in her cell at night, fed Army-style
rations and rarely permitted to see sunlight. The center is
within sight of Minute Maid Park, the downtown baseball
stadium that was called Enron Field before Enron filed for
bankruptcy in 2001. Not that Mrs. Fastow will be able to
see the stadium, because the only windows in the
cast-concrete detention center are narrow strips of
translucent glass.

For most inmates, the hardest part of incarceration is the
loss of privacy. This is especially true at the Houston
site and at other administrative detention centers, which
have strict security because they house men and women
accused of all kinds of crimes. Mrs. Fastow would have far
more freedom of movement at a low- or minimum-security,
single-sex lockup like the federal prison camp in Bryan,
Tex., that her lawyer had requested, or in similar federal
prisons like those currently housing Samuel D. Waksal, the
former ImClone Systems founder who pleaded guilty to
securities fraud, and Jamie Olis, a former midlevel
executive at Dynegy who was convicted of accounting fraud.

Without explanation, Judge David Hittner of the Federal
District Court here declined to recommend that the Bureau
of Prisons send Mrs. Fastow to such a prison, despite
entreaties from her lawyer and prosecutors.

As a result, Mrs. Fastow will be under constant
surveillance, as is the rule at detention centers, and will
not be allowed to roam about without an escort or scrutiny,
as she would at a minimum-security prison camp. Officials
will also open all her mail and monitor her phone
conversations, which would be unlikely if she were at a
lower-security facility.

Perhaps the worst loss of privacy, however, will come at
night, when she is locked in her cell and must use the
toilet under the gaze of her cellmate. "It's really hard to
get used to going in front of someone but after lockdown,
you can't ask them to step outside or anything," Ms. Reza
said. The steel doors of the detention center's cells are
locked promptly at 9 p.m. and do not reopen until 6 a.m.,
when most of the inmates go to their prison jobs. There is
no nightly lockdown at most minimum- and low-security
federal facilities.

Like many women at the detention center, Mrs. Fastow may be
assigned a job in the laundry or dining area of a
cellblock, where she would warm trays of food sent from the
kitchen downstairs. As a woman, she is not eligible to work
in the kitchen preparing food - as is, say, Ben F. Glisan
Jr., the former treasurer of Enron, who is at the Houston
center serving part of his five-year sentence for
conspiracy to commit wire and securities fraud. To keep the
sexes separated, and because of the heavy lifting that is
sometimes required, only men work in the kitchen.

Kitchen work is especially desirable, former inmates say,
because prisoners can then serve their own food and eat in
the kitchen instead of in their cellblock. Not that the
food is very good. Ms. Reza described it as "gross." Maria
Douglas, a spokeswoman for the Federal Bureau of Prisons,
said all correctional facilities served meals using
"armed-services recipes at an average cost of $2.74 per
day, per inmate."

Women are not eligible for the coveted jobs - trimming the
trees and shrubbery around the center or loading supplies
at a nearby warehouse - that let inmates go outside; those
jobs are also reserved for men. The only sunlight that
women at the detention center see is the vague glow that
permeates the four-inch-wide frosted-glass windows in their
cells.

"You're living a fluorescent existence," said Vanessa
Leggett, an aspiring crime writer who served 10 months at
the center for refusing to turn over to a grand jury notes
from her interviews with people implicated in the murder of
a Houston socialite.

Deprived of natural light, female inmates in the center
often look as gray as the building's concrete exterior.

Despite their pallor and lack of access to makeup, women at
the detention center still attract leers from the male
inmates they encounter in common areas like the visitation
room and the medical clinic.

Since white inmates are the minority, Mr. Hill said, they
are more likely to be sexually, verbally and physically
harassed. But Ms. Leggett, who is white, said she did not
feel any discrimination while incarcerated, although she
added that she might have had special status because she
was perceived as someone who had flouted authority.

But more than her sex and race, Mrs. Fastow's wealth will
work against her in prison, former inmates said. "You've
got to understand that most people in there have nothing,"
Mr. Hill said. "If you have money, you're going to have to
deal with a lot of panhandling and scams."

Typical are inmates who offer to sell physical protection,
or pester wealthy prisoners to buy them goodies like
off-brand sneakers or candy bars at the commissary. And
kindnesses received will usually come with the expectation
of payback.

"Don't accept any favors," Ms. Leggett said, giving advice
that could also apply in the cutthroat corporate world.
"They all have strings attached."

http://www.nytimes.com/2004/06/20/business/yourmoney/20jail.html?ex=1088729803&e
i=1&en=ec6ebf57987bc66e (http://www.nytimes.com/2004/06/20/business/yourmoney/20jail.html?ex=1088729803&ei=1&en=ec6ebf57987bc66e)

mlk2001
06-20-2004, 07:41 AM
for some reason i really dont feel sorry for her. what they did to the people that worked for enron is wrong...a lot of people lost everything! to me they should have thought about the welfare of the people who where dedicated to making that company run before they "reeped the benifits"! like i tell my husband if you do the crime you need to do the time. maybe this experience will teach all those higher ups of enron who are serving deserved time a little life lesson.. just my two cents..
dont forget the "little people"

PatMD7
06-20-2004, 08:05 AM
All crimes affect other people in one way or another.
Mrs. Fastow may be a member of our PTO family.
God give her strength, because she is going to need it.

Retired-11
06-20-2004, 08:24 AM
I am sorry...but I am outraged at MLK's post. First of all, we are ALL human beings...that said, we all make mistakes, hopefully we go on to better lives having learned from those mistakes. I am sure the Ms. Fastow, TRULY regrets her actions. Any prison time is hard, but to kick the women when she is down is down right dispicable. Don't hate her because she led a comfortable life style, remember that she has an education, and therefore entered the corporate world. Look at my signature - God gives us ALL the tools to live with - it is up to EACH of us how we use them. I am only outraged at Ms. Fastow's sentence because in this morning's Newspaper, the Health South Executives got 6 months of Home Incarceration and the Loss from their criminal acts was larger. So Justice is not fair and equal....In Ms. Fastow's case, the government is trying to make her an example. I am also outraged that the government would lockup any human being for any length of sentence with never being able to see the sunshine....You are sent to prison as punishment not to be tortured.

sbrown110
06-20-2004, 08:34 AM
I too believe that it is a tragedy that so many became "victims" in the Enron fall. But there is a "victim" associated to my crime also, it just doesn't happen to be an individual, so maybe on the surface the tragedy does not seem so great. And yet, breaking the law is breaking the law. In a sense if I compare my crime to hers, we are equal.

What I find horrible about this situation is that she drew a Judge who decided to make an example of her, and frankly from all I have read he appears to hate her. Going to prison is the punishment. All across the US people are asking for judicial recommendations to certain institutions and most are receiving that recommendation. And then another large percentage are being given their designation choices. I fail to see why Lea Fastow does not get this same consideration. Why must she be punished further?

I am also deeply saddened when I think of her two small children which she will be away from. No matter the crime, no matter the person, a prison sentence is a tragedy in anyone's life and/or family.

Sheryl

cjjack
06-20-2004, 09:00 AM
I think one thing that may have angered her judge is the fact that after the scandal broke, Ms. Fastow opened a resale store to sell of all of the belongings that she and her husband purhased with the money they allegedly took from Enron. She and her husband kept the money from the sale of these items. There was a news article about this. Let me see if I can find it and I will post it here.

I do not believe what they did was right, but you go to prison as punishment and not for punishment. The judge seems to be unfairly using her as an example. Had this case been not as high profile I believe the judge would have certainly been more reasonable.

Also, there are a few things in this article that I believe are inaccurate. They open your mail no matter if you are in a camp or not. Also, I was in prison with some high profile inmates and they got along just fine with the others as long as they did not act like that they were better than everyone else there, such as the problems that Karen Bond had while she was in prison.

Retired-11
06-20-2004, 11:36 AM
Please don't get me wrong - I am not minimizing what Ms. Fastow did -I simply think that here is another case where not only the media has portrayed her as some cold hearted criminal.... and all too often the american public stands by that opinion. Judging someone without all the necessary facts is total ignorance. I too had my own case blown totally out of proportion in the media. The facts of the case were no where near what was written. There are two sides to all storys, but unfortunately when you have an entity as big as the US government after you and the unlimited resources of the taxpayers funds, no one, not the Lea Fastow's or the Martha Stewarts, or the little people can compete. All to often in the United States Judicial system, the local AUSU's and the US Attorney's see this as a stepping stone to their own judicial appointments. Highly political....YES....are they doing a service to this country by filling a bed in an otherwise overcrowded system...NO.....

What about the football player who sexually assaulted the girl at the party here locally....He was tried and convicted in State court, yet the judge let him re-enter his plea to guilty and then sentenced him to 10 years of probation...THAT IS AN OUTRAGE!!!!Pure and Simple...But no one is blasting him in the media, could it be because he is a football player.

Do you think this teaches society anything? It's okay to Rape but it's not okay to cheat on your taxes!!!! Wouldn't a punishment like making Lea Fastow help the poor or the seniors of our country be more fitting? That way she would get a true sense of the impact of her crime....She has led a priviledged lifestyle,NOT becuase of Enron, but because she grew up in a family that could afford to give her an education...which makes sending her to the FDC in Houston even more cruel. What a total waste....

cjjack
06-20-2004, 11:41 AM
I agree that our justice system is skewed. All to often the media do not portray the facts, just a sensationalized version so that they can sell newspapers.

mach1
06-20-2004, 11:42 AM
Chrisa~
Thank you for sharing the article! I believe, the judge wanted to exercise his political agenda as well as set an example ... In a way, Hittner, was reminding Congress, that while, you may legislate all you want, I still have Judicial discretion - albeit minimal discretion. Hittner, told her once the PSI came back that he was not going to accept the "deal" and her agreement allowed her to withdraw, as was her right. Based on the withdrawl of the plea, I believe, the Judge now totally insane with his desire to make an example of Lea and flex what little Judicial discretion he has, gave her the full sentence for a misdemeanor charge, and again, by Hittner's refusal, to give a recommendation to the BOP was his way of saying, I am in charge, not Congress, not the prosecutor, this is still my ball game! While Lea, had many letters sent to the judge, on her behalf, with respect to the charitable work that her family has done ... the Judge told her point blank, that he was NOT sentencing her "grand daddy", but he was sentencing her ...

So yes, I do believe he was making an unnecessary example of Lea as well as using any possible Judicial discretion he has within his power as a Federal Judge, to tell Congress, John Ascroft, and the like ... "I will do what I damn well please - and don't forget that ..."

So, I think Lea, should not be treated any different than anyone else who breaks the law, as the law should be applied straight across the board, regardless of one's socioeconomic status. I realize, that in many, many cases, the color of Justice is Green, but please, let's not be judgemental to anyone here on PTO ... How can we expect to be Forgiven, if we ourselves, espouse predjudicial rhetoric, and as such, to uphold our own belief systems by striking down anothers ... Let's love everyone! :)

cjjack
06-20-2004, 11:56 AM
So true, Carolyn. I am a convicted felon. I committed a crime and was punished according to the law. But how many don't get caught?? We had a federal defense attorney here in Knoxville that was arrested over the weekend in a hotel room with 3.8 grams of cocaine. Lets see how much time he gets. Not much, I'll wager, if any.

Retired-11
06-20-2004, 12:44 PM
From the Associated Press

FORMER HEALTHSOUTH CFO gets house arrest, is ordered to pay $2.4M

Huntsville,Ala. - A federal judge on Saturday sentenced a former Healthsouth Corp. Chief Financial officer to six months of house arrest and order him to pay more than $2.4 million for his part in the clinic chain's multi-million dollar accounting scandel.

Michael Martin, 42 pleaded guilty to conspiracy to commit wire fraud, and falsifying financial information. He was ordered to forfeit $2,375 Million and fined $50,000.00 His voice cracking Martin apologized to his family, friends, Healthsouth employees, and shareholders, saying he knew what he did was wrong. Martin of Birmingham is one of a dozen Healthsouth executives to plead guilty and cooperate with the government, which says the company overstated earnings to meet Wall Street expectations.

mach1
06-20-2004, 06:02 PM
Chrisa~
Keep us posted on the Knoxville case ... It will be interesting to follow!

PatMD7
06-20-2004, 07:12 PM
Six months of house arrest for Michael Martin??? What a joke!
And they call this justice....

Fed-X
06-20-2004, 10:17 PM
For those of you who don't know who Judge Hittner is, he is known as the "Hitman" down here. I've been in his court and he is no joke. Doesn't matter if you are a little ole lady that cheated on Social Security or a big wig. He'll send you to prison just as quick either way. (I've seen & felt it) It's those who walk into his court room with an attitude or feeling overly confidant, showing little remorse, that are in grave peril. (That goes even for law enforcement!!)

I think that her having to do her time at the FDC is crap but he may not actually be the one that has put her there. Technically speaking, the judges do not have a say in where the BOP places someone, however I would not be surprised if there wasn't any influence that isn't official, per-se. The BOP designates where people go. The judge can only recommend a place. If he doesn't they put the inmate where they want though they still try to keep you within 500 miles.

If he really wanted to give her a hard time he didn't have to allow her to self-surrender. Also, I think they are leaving out that a lot of women "campers" are detoured to the FDC in Houston to help maintain it. This goes for men as well. They pull 6 month hitches from what I understand.

All that being said, I think it would be much more fair for them to send her to Bryan or someplace else but you never know, and with something of this magnitude, it isn't just the Judge who might want to make examples - you have the entire government.