A federal judge has rejected a plea bargain federal prosecutors had struck with the wife of former Enron Chief Financial Officer Mr Andrew Fastow, prompting her to withdraw her guilty plea.
Ms Lea Fastow, a former Enron assistant treasurer, changed her plea to not guilty after US District Judge David Hittner rejected the deal. He had for months suggested he would not stick to the recommended prison term.
She pleaded guilty on Jan. 14, the same day her husband pleaded guilty to wire and securities fraud and agreed to cooperate with the ongoing probe into Enron's collapse.
The five-month deal was designed so that the Fastows' young children would not be without at least one of their parents.