Judge agrees to Enron plea bargain

A US judge has said he will accept a plea bargain with former Enron assistant treasurer Lea Fastow, improving the chances of a similar deal with her husband Andrew, the company's former finance chief.

Lea Fastow, who has yet to say whether she will accept the deal, must decide by today. Judge David Hittner had originally rejected the terms of the bargain on the grounds that he did not wish to be bound by the five-year prison-sentence cap. He has now agreed on the understanding he can vary the sentence.

Under the terms of the bargain, Lea Fastow must plead guilty to one count of tax evasion. A deal with her is seen as vital if prosecutors are to get Andrew's co-operation in their investigation into other senior executives.

The proposed deal would lead to 'a global resolution of two cases that are important to the government', Leslie Caldwell, head of the Justice Department's Enron task force, said.

Andrew Fastow has been negotiating a plea bargain to co-operate with authorities, pay more than $20m ($10.9m) to settle civil charges and serve 10 years in jail. He is accused of masterminding the complex financial webs behind Enron's collapse.