Oct. 6 (Bloomberg) -- Andrew Fastow, the former Enron Corp. finance chief who began a six-year prison sentence last week for his role in the fraud that destroyed the company, will receive day passes to give depositions in Enron investor lawsuits.

David Gerger, Fastow's lawyer, said U.S. District Judge Melinda Harmon in Houston, who presides over the civil class action cases brought by Enron investors, has agreed to release Fastow for several days this month to give depositions.

``He will be out for the depositions,'' Gerger said in a telephone interview late yesterday. ``He isn't being released, and he'll be escorted back each day when he's done.''

Fastow, 44, began serving his sentence Sept. 26 at a maximum-security federal prison in downtown Houston. He must remain in the custody of U.S. marshals while outside the prison and cannot go anywhere except the deposition center, which is located several blocks from the prison, Gerger said. He declined to say when Fastow's day passes will begin or how long the process will take.

Lawyers representing Enron investors asked Fastow's sentencing judge to delay sending him to prison until he could give depositions fully describing the role some of the nation's largest banks played in helping Enron distort its financial statements through bogus transactions. Fastow gave the court a 24-page declaration that outlined the banks' role in Enron's fraud before he was sentenced.

Guilty

Fastow pleaded guilty to two counts of conspiracy to commit wire fraud. In addition to his prison sentence, he forfeited almost $24 million in cash and property. With time off for good behavior and for completion of a drug-dependency program, Fastow could be released in less than five years.

``This is the largest securities case in history,'' said Paul Howes, who represents approximately 1.6 million Enron investors in the civil class action, or group, lawsuits, in an emergency petition to Harmon for Fastow's temporary release filed last week. ``The testimony of Enron's former CFO, who was the principal contact for the company's banks in structuring, designing and executing transactions that were done solely to manipulate reported financial statements, is crucial evidence that should be taken.''

A Houston appellate lawyer who has followed the case said it makes sense to let Fastow participate in the civil depositions.

``At this point, why hamstring the civil lawyers?'' said attorney Brian Wice. ``If the object is to recover as much money as possible, why not let him out?''

The case is U.S. v. Fastow, H-02-665, in the U.S. District Court, Southern District of Texas (Houston).

To contact the reporter on this story: Laurel Calkins in Houston at laurel@calkins.us.com.

Last Updated: October 6, 2006 00:04 EDT