Switching Sides

Enron's Former Top Accountant Pleads Guilty, Will Testify Against Others

(CBS/AP)  The trial is scheduled to begin next month but has been granted a delay, which Cohen says is likely to give defense attorneys more time to prepare for the new witness.

"I’m not surprised the judge granted the defense a few extra weeks to absorb this dramatic change in the case," Cohen said. "They need time to figure out what Causey is likely to say against them and how to deal with his testimony on cross-examination. The whole trial dynamic now is different."

Some of Causey's charges also overlap with the seven fraud and conspiracy counts pending against Lay, in which the former chairman is accused of perpetuating the ruse after Skilling's abrupt resignation in August 2001.

Skilling and Lay maintain that they neither committed nor knew of any crimes at Enron, and both have pleaded not guilty.

Causey, 45, could be more damaging to Lay and Skilling than former Enron finance chief Andrew Fastow, who pleaded guilty to two counts of conspiracy in January 2004. Unlike his former peer, Causey didn't skim millions of dollars for himself from shady deals.

Also, Lay has repeatedly pointed to Fastow as the crook who abused his trust, highlighting the former finance chief's admitted skullduggery.

"There is some safety in numbers from the government's perspective. It's not just Andy Fastow now, it's another senior official. That takes some of the pressure and burden off of Fastow," said Kirby Behre, a former federal prosecutor. "They might make an effective one-two punch in terms of government witnesses."

Another former prosecutor said the Lay and Skilling defense teams knew a Causey plea was possible.

"It changes the face of the trial for the prosecutors and the defense," said Jacob Frenkel. "They had to have some contingency plan for trial preparations for a case without Causey. Now they just put that plan in place."

He said the deal should streamline what had been expected to be a four- to six-month trial.