WASHINGTON, October 2 (IslamOnline & News Agencies) - Bankrupt energy giant Enron's former financial chief Andrew Fastow has been charged with fraud and money laundering by the U.S. Department of Justice, an official said Wednesday, October 2.

Enron, which filed for bankruptcy in December last year, enlisted a "major financial institution" in its effort to manipulate the group's earnings per share, the Department of Justice official said.

Fastow, the 40-year-old former chief financial officer, was shown on television being led in handcuffs by Federal Bureau of Investigation officers in Houston, Texas, where he was to face a federal court, Agence France-Presse (AFP) said.

"Fastow reported to the FBI office in Houston this morning," an FBI spokesman said, without giving further details.

Fastow's lawyers said his first court appearance was due to start in Houston at 11:00 am (1600 GMT).

Since Enron's multibillion-dollar collapse last December, Fastow has been the focus of numerous investigative efforts, involving the U.S. Congress, Justice Department and Securities and Exchange Commission.

Fastow is accused of setting up a secretive company to hide Enron's huge losses.

The criminal complaint unsealed in the Houston court said Fastow and others devised a scheme to defraud Enron and its shareholders by setting up secret companies, called Special Purpose Entities (SPEs), to hide debt and make Enron look more attractive to investment analysts and credit rating agencies.

The charge said that Fastow and others at Enron used the SPEs to manipulate Enron's financial results and enrich themselves at Enron's expense, AFP reported.

The Justice Department said that "Enron at least once enlisted a major financial institution to assist in its financial statement manipulation."

The New York Times reported Tuesday, October 1, that Fastow would also face a civil complaint by the Securities and Exchange Commission, which oversees the financial markets.

The report said an agreement involving one of the off-balance-sheet companies at the heart of Enron's tangled finances might prove to be the most explosive element in a raft of allegations that the authorities are expected to bring against Fastow.

Fastow, who somberly waited outside the court dressed in a gray suit and red tie, has not entered a plea. But his attorney, John Keker, said in a statement: "Now that he is charged, Andy Fastow welcomes the opportunity to prove the truth about Enron.

"The truth is simple. Enron hired Andy to arrange off-balance-sheet financing. Enron's board of directors, its CEO and its chairman directed and praised his work. Accountants and lawyers reviewed and approved his work."

Keker added that for the past year "Andy Fastow's former colleagues have denied their own responsibility, whispered false rumors and often outright lied to discredit him. We will confront the gossip and lies in a courtroom, not in the press."

Prosecutor Andrew Weissmann said there would be a swift trial. Asked whether others would be prosecuted, he merely replied: "We are not finished with the Enron investigation."

If convicted on all charges, Fastow could face a maximum of 140 years in prison, according to Weissmann.

U.S. prosecutors said separately they were seeking the extradition of three former officials of British-based National Westminster Bank over Enron's collapse, AFP said.

The three have been accused of involvement in one of the secretive offshoot companies and used it to siphon off money for their personal benefit.

The Justice Department said it would also freeze another 11 million dollars of Fastow's assets. The department said the government will seek the forfeiture of a total of 37 million dollars of Fastow's assets.

Fastow's chief Enron lieutenant, Michael Kopper, pleaded guilty in August 2002 to conspiracy to commit wire fraud and money laundering, and officials said he is now cooperating with the government's investigation.

In June 2002, a Houston federal jury convicted Enron's outside auditor, accounting firm Arthur Andersen, of obstruction of justice for destroying Enron documents to keep them from the Securities and Exchange Commission.