Former Enron chief financial officer Mr Andrew Fastow and his wife, Mrs Lea Fastow, were set to plead guilty today to federal criminal charges arising from the collapse of the bankrupt merchant energy giant.
A source close to the case said they would admit to misdeeds in exchange for far more lenient sentences than they might have gotten had they been convicted in a jury trial.
The plea deals, which must be approved by federal judges, could give a boost to prosecutors seeking to indict other former Enron bigwigs if the Fastows agree to tell investigators everything they know.
Still not charged in the financial scandal that opened a window on wider US corporate misdeeds are former Enron chairman Mr Ken Lay and former chief executive officer Mr Jeff Skilling, both of whom have proclaimed their innocence.
Mr Andrew Fastow was the numbers whiz kid who masterminded Enron's use of off-the-books partnerships to hide billions of dollars in debt and artificially boost profits. Authorities say at least $45 million from those deals were siphoned off by him and his wife.
News reports say Mr Fastow was expected to plead guilty before US District Judge Kenneth Hoyt to some part of the 98 criminal charges against him in exchange for a 10-year sentence. He could have faced life in prison if convicted of the crimes.
Mrs Lea Fastow earlier agreed to plead guilty to a tax fraud charge that was one of six counts against her in exchange for a five-month sentence. But US District Judge David Hittner, who is handling her case, scotched that deal last week, saying he might want to impose a stiffer penalty and asked for a pre-sentencing investigation to help him decide.