Ex-Enron Accountant Switches Sides

Richard Causey Expected To Plead Guilty, Bolster Government's Case

(CBS/AP)  "What it really means is a shorter, more focused trial, which is better for the government. It probably takes out of the equation some of the more complex accounting issues. The defense was likely hoping to make this case seem like a complex civil financial fraud case, and without Causey, that will be more difficult," Frenkel said.

Causey faces more than 30 counts of conspiracy, fraud, insider trading, lying to auditors and money laundering. Many of those overlap with the 35 counts of fraud, conspiracy, lying to auditors and insider trading pending against Skilling.

The pair are accused of conspiring with others to fool investors into believing a wobbly Enron was healthy in the years leading to its December 2001 crash.

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. Causey was indicted about a week after Fastow cut a deal with prosecutors and agreed to help the government pursue former top Enron executives.

Skilling was added to the indictment in February 2004, followed by Lay in July that year.

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."