Houston ? Former Enron Corp. chief financial officer Andrew Fastow was indicted Thursday on 78 federal fraud, money-laundering and other charges, making him the highest-ranking company official charged in the probe.

The indictment, returned by a grand jury in Houston, alleges that Fastow masterminded schemes to artificially inflate the energy company’s profits. If convicted, he faces hundreds of years in jail and millions of dollars in fines.

The indictment is essentially a formal restatement of a criminal complaint filed Oct. 2. But it is notable for the sheer number of charges, including multiple counts of fraud, money laundering and conspiracy. One count of obstruction of justice was not included in the original complaint.

Fastow, 40, is free on $5 million bond and faces a Wednesday arraignment.

“These charges are full of sound and fury, but the truth about Enron has yet to be told,” said Fastow’s attorney, John W. Keker. “When that truth is told, to a jury of 12 honest Americans, Andy Fastow will be set free.”

Prosecutors are expected to pressure Fastow to learn what he might say about the actions of his colleagues, including former Enron chairman Kenneth Lay and former chief executive Jeffrey Skilling.

Neither Lay nor Skilling has been charged.

Deputy Atty. Gen. Larry Thompson, head of the Bush administration’s corporate fraud task force, said the indictment did not end the investigation into Fastow. Thompson also said federal officials “will use every appropriate measure to recover the ill-gotten gains of these corporate schemers.”

Enron, No. 7 on the Fortune 500 list two years ago, filed for bankruptcy Dec. 2 after revealing a $618 million loss and eliminating $1.2 billion of shareholder equity.

Enron’s collapse was the first in a series of corporate scandals that rocked the business world and roiled the stock market. Investors lost huge amounts of money and former Enron employees lost most of their retirement savings. Accounting firm Arthur Andersen LLP went under soon after it was found guilty in June of obstruction of justice in shredding documents related to its Enron audits.

The indictment alleges that Fastow and others created schemes to defraud Enron and its shareholders through transactions with off-the-books partnerships that made the company look more profitable than it was.

Prosecutors also allege Fastow gained an estimated $30 million from kickbacks funneled through Michael Kopper, his former aide, and investors or family members. Investigators say Fastow also siphoned off income from the partnerships.

Maximum penalties are 20 years for money laundering, 10 years for wire fraud and five years for conspiracy in addition to fines.

Asked if the indictment could induce Fastow to cooperate with prosecutors, Assistant U.S. Atty. Andrew Weissmann said, “These are significant charges that carry significant jail time.”