HOUSTON -- Andrew Fastow, the Enron executive who masterminded the financial schemes that brought down the company, was charged Wednesday with inflating the energy giant's profits and siphoning off millions for himself, his family and friends.

The former chief financial officer is the biggest Enron figure targeted by the Justice Department so far. Prosecutors may use him to build a case against other insiders, including former Enron chief executive Jeffrey Skilling and former chairman Kenneth Lay.

Fastow, 40, surrendered to the FBI and was led away in handcuffs. He was charged with fraud, money laundering and conspiracy.

He was released later Wednesday on $5 million bail after his wife and parents surrendered deeds to five homes and provided a $3 million bond.

Prosecutors froze $11 million in other assets so Fastow "wouldn't have that as his nest egg in case he fled," said prosecutor Andrew Weissmann. Fastow and his wife surrendered their passports a month ago.

Prosecutors said Fastow executed "clandestine transactions" through a web of off-the-books partnerships to hide $1 billion in Enron debt.

"Fastow and his co-conspirators systematically and thoroughly corrupted the business of one of the largest corporations in the world," Deputy Attorney General Larry Thompson said in Washington.

The government described a conspiracy that lasted from 1997 to mid-2001. But except for Michael Kopper, a once-trusted Fastow aide who has pleaded guilty to conspiracy, the government's criminal complaint does not identify other participants.

Fastow's attorney, John Keker, said his client was just following orders.

"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 said outside the courthouse. "He never believed he was committing any crime."

The criminal complaint alleges that Enron directors told investigators that Fastow, former chief accounting officer Richard Causey, the company's chief executive and others misled the board about Fastow's role in the key LJM partnership.