Richard Causey
Encyclopedia
Richard Alan Causey is one of the prominent figures in the Enron
accounting scandal. Causey was Enron's Executive Vice President and Chief Accounting Officer.
Causey graduated from the University of Texas at Austin
with a bachelor's degree in accounting and an MBA. He then became a certified public accountant
in the state of Texas
. He obtained a job at Arthur Andersen
, where he rose within the ranks and eventually became the head of the Enron
audit team.
Closely working alongside employees from Enron, he got to know the staff as well as the accounting procedures. He left Arthur Andersen and joined the Enron Capital and Trade Division. He eventually was promoted to Chief Accounting Officer, where he signed off on the Special Purpose Entities that were Enron's downfall. He was fired from Enron on February 14, 2002, as part of an investigation by the U.S. Securities and Exchange Commission.
On January 22, 2004, Causey was indicted for wire fraud
and conspiracy
charges in connection with his activities at Enron between 1998 and 2002. While prosecutors do not believe he skimmed millions of dollars from the numerous suspicious deals, he is believed to know details of many of them. Causey originally pled not guilty, but on December 28, 2005, he entered a guilty plea and agreed to testify against Kenneth Lay
and Jeffrey Skilling
in exchange for a 5 to 7-year prison term. Skilling's lawyer Daniel Petrocelli reportedly responded that Causey was innocent, and simply broke under the pressure. On January 2, 2007, Causey reported to the Federal Correctional Institution
in Bastrop, Texas
. He is scheduled to be released in October 2011.
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
accounting scandal. Causey was Enron's Executive Vice President and Chief Accounting Officer.
Causey graduated from the University of Texas at Austin
University of Texas at Austin
The University of Texas at Austin is a state research university located in Austin, Texas, USA, and is the flagship institution of the The University of Texas System. Founded in 1883, its campus is located approximately from the Texas State Capitol in Austin...
with a bachelor's degree in accounting and an MBA. He then became a certified public accountant
Certified Public Accountant
Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
in the state of Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
. He obtained a job at Arthur Andersen
Arthur Andersen
Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms among PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG, providing auditing, tax, and consulting services to large corporations...
, where he rose within the ranks and eventually became the head of the Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
audit team.
Closely working alongside employees from Enron, he got to know the staff as well as the accounting procedures. He left Arthur Andersen and joined the Enron Capital and Trade Division. He eventually was promoted to Chief Accounting Officer, where he signed off on the Special Purpose Entities that were Enron's downfall. He was fired from Enron on February 14, 2002, as part of an investigation by the U.S. Securities and Exchange Commission.
On January 22, 2004, Causey was indicted for wire fraud
Wire fraud
Mail and wire fraud is a federal crime in the United States. Together, 18 U.S.C. §§ 1341, 1343, and 1346 reach any fraudulent scheme or artifice to intentionally deprive another of property or honest services with a nexus to mail or wire communication....
and conspiracy
Conspiracy (crime)
In the criminal law, a conspiracy is an agreement between two or more persons to break the law at some time in the future, and, in some cases, with at least one overt act in furtherance of that agreement...
charges in connection with his activities at Enron between 1998 and 2002. While prosecutors do not believe he skimmed millions of dollars from the numerous suspicious deals, he is believed to know details of many of them. Causey originally pled not guilty, but on December 28, 2005, he entered a guilty plea and agreed to testify against Kenneth Lay
Kenneth Lay
Kenneth Lee "Ken" Lay was an American businessman, best known for his role in the widely reported corruption scandal that led to the downfall of Enron Corporation. Lay and Enron became synonymous with corporate abuse and accounting fraud when the scandal broke in 2001...
and Jeffrey Skilling
Jeffrey Skilling
Jeffrey Keith "Jeff" Skilling is the former president of Enron Corporation, headquartered in Houston, Texas. In 2006 he was convicted of multiple federal felony charges relating to Enron's financial collapse, and is currently serving a 24-year, four-month prison sentence at the Federal...
in exchange for a 5 to 7-year prison term. Skilling's lawyer Daniel Petrocelli reportedly responded that Causey was innocent, and simply broke under the pressure. On January 2, 2007, Causey reported to the Federal Correctional Institution
Federal Correctional Institution, Bastrop
Bastrop Federal Correctional Institution also known as Federal Correctional Institution, Bastrop, is a low security federal prison for men located north on State Highway 95 in unincorporated Bastrop County, Texas, United States north of Bastrop and southeast of Austin.-Background:FCI Bastrop...
in Bastrop, Texas
Bastrop, Texas
-Demographics:As of the census of 2000, there are 5340 people in Bastrop, organized into 2034 households and 1336 families. The population density is 734.8 people per square mile . There are 2,239 housing units at an average density of 308.1 per square mile...
. He is scheduled to be released in October 2011.