The US Justice Department accused the embattled Fastow, once seen as the brightest spark in American financial circles, of manipulating company results and hiding losses in secret partnerships.

But a statement issued through his lawyer, suggests a defiant Fastow will not go down without a fight with the likelihood of him giving evidence against former chairman Ken Lay greatly increasing.

'These charges are full of sound and fury,' the statement read. 'The truth about Enron has yet to be told. When that truth is told, Andy Fastow will be free.'

In the meantime he faces a five-year jail sentence on each of the 78 charges brought against him.

Deputy attorney general Larry Thompson said the investigations into Fastow's alleged illegal activities would continue. 'We will use every appropriate measure to recover the ill-gotten gains of these corporate schemers. Justice demands it.'

Fastow has been free on bail since October.