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Kenneth Lay

Kenneth Lay
Kenneth Lee Lay
found guilty on May 25, 2006, of 10 counts against him; the judge dismissed the 11th. Because each count carried a maximum 5- to 10-year sentence, legal experts said Lay could have faced 20 to 30 years in prison.[2] However, he died while vacationing in Snowmass, Colorado on July 5, 2006, about three and a half months before his scheduled October 23 sentencing.[3] Preliminary autopsy reports state that he died of a heart attack caused by coronary artery disease. As a result of his death, on October 17, 2006, the federal district court judge who presided over the case vacated Lay’s conviction.[4]

Born Died

April 15, 1942 Tyrone, Missouri, United States July 5, 2006 (aged 64) Snowmass, Colorado, United States Fraud, false statement Could have faced 40 years in prison plus monetary fines, but died before sentencing, resulting in vacating of conviction Deceased Businessman Linda Lay

Early life and career
Kenneth Lay was born into a poor family in Tyrone, Missouri. When he was a child Ken delivered newspapers and mowed lawns. His father, Omer, was a Baptist preacher and some-time tractor salesman. Early on he moved to Columbia, Missouri and attended David H. Hickman High School and the University of Missouri where he studied economics. He served as president of the Zeta Phi chapter of the Beta Theta Pi fraternity at the University of Missouri. He obtained his Doctor of Philosophy in economics from the University of Houston in 1970 and went to work at Exxon Mobil Corp. successor of Humble Oil & Refining upon graduation. Lay worked in the early ‘70s as a federal energy regulator. He then became undersecretary for the Department of the Interior before he returned to the business world as an executive at Florida Gas. By the time energy was deregulated in the 1980s, Lay was already an energy company executive and he took advantage of the new climate when Omaha-based Internorth bought his company Houston Natural Gas and changed the name to Enron in 1985. The much larger, better capitalized and more diversified Internorth was then used as an asset to propel his efforts at Enron. He also was a member of the board of directors of Eli Lilly and Company. Lay was one of America’s highest-paid CEOs, earning, for example, a $42.4 million compensation package in 1999.[5] In

Charge(s) Penalty

Status Occupation Spouse

Kenneth Lee "Ken" Lay (April 15, 1942 – July 5, 2006) was an American businessman, best known for his role in the widely-reported corruption scandal that led to the downfall of Enron Corporation. Lay and Enron became synonymous with corporate abuse and accounting fraud when the scandal broke in 2001. Lay was the CEO and chairman of Enron from 1985 until his resignation on January 23, 2003, except for a few months in 2000 when he was chairman and Jeffrey Skilling was CEO. On July 16, 2002, Lay was indicted by a grand jury on 11 counts of securities fraud and related charges.[1] On January 31, 2006, following four and a half years of preparation by government prosecutors, Lay’s and Skilling’s trial began in Houston. Lay was

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December 2000, Lay was mentioned as a possible candidate for President Bush’s Treasury secretary along with J.P. Morgan & Co. head Douglas A. Warner III and a few others.[6] Lay dumped large amounts of his Enron stock in September and October 2001 as its price fell, while encouraging employees to buy more stock, telling them the company would rebound. Lay liquidated more than $300 million in Enron stock from 1989 to 2001, mostly in stock options. As the scandal unfolded, Lay insisted he wanted to "tell his story." But then he reneged on a promise to testify to Congress, taking the Fifth instead.
[7]

Kenneth Lay
reputation took a blow as he appeared confrontational and irritable at several points during his testimony.[2] On May 25, 2006, Lay was found guilty on all six counts of conspiracy and fraud by a jury of eight women and four men. In a separate bench trial, Judge Lake ruled Lay was guilty of four counts of fraud and false statements. Sentencing was scheduled to take place on 11 September 2006, but was later rescheduled for 23 October 2006.[9] A number of books have been written on Lay and Enron including Conspiracy of Fools (2005), Icarus in the Boardroom, The Tao of Enron: Spiritual Lessons from a Fortune 500 Fallout (2002), The Smartest Guys in the Room (2003), 24 Days, and Power Failure. The Smartest Guys in the Room was adapted into a documentary film titled Enron: The Smartest Guys in the Room, released in 2005.

Lay had been married to his second wife and former secretary, Linda, for 22 years and had two children, three stepchildren and twelve grandchildren. Articles by Ken Lay • Megatrends Of Energy - World Energy Magazine Vol. 1 No. 1 • Electricity Restructuring Update Increasing Efficiencies and Customer Choice are Integral to the Market Transition - World Energy Magazine Vol. 1 No. 2

Death
Lay died on July 5, 2006, while vacationing in Colorado. The Pitkin Sheriff’s Department confirmed that officers were called to Lay’s house in Old Snowmass, Colorado, near Aspen at 1:41 AM MDT. Lay was taken to Aspen Valley Hospital, where he was pronounced dead at 3:11 AM MDT. Autopsies indicate that he died of a heart attack brought on by coronary artery disease, and found evidence that he had suffered a previous heart attack.[3] A private funeral with around 200 in attendance was held in Aspen four days after his death, his body cremated and the ashes buried in a secret location in the mountains.[10][11][12] A memorial was held a week after his death at the First United Methodist Church in Houston, attended by nearly 1,200 guests including former president George H. W. Bush, who did not speak.[13]

Indictment and trial
On July 7, 2004, Lay was indicted by a grand jury in Houston, Texas, for his role in Enron’s collapse. Lay was charged, in a 65-page indictment, with 11 counts of securities fraud, wire fraud, and making false and misleading statements. The trial commenced on January 30, 2006, in Houston, despite repeated protests from defense attorneys calling for a change of venue on the grounds that "it was impossible to get a fair trial in Houston" – the epicenter of Enron’s collapse. Enron’s bankruptcy, the biggest in U.S. history when it was filed in December 2001, cost 20,000 employees their jobs and many of them their life savings. Investors lost billions."[2] Before Lay was put on trial he was estimated to have a gross wealth of approx. 40 million US dollars. It is believed that most of it was spent on legal defense. During his trial, Lay claimed that in 2001 Enron stock made up about 90 percent of his wealth, and that his current net worth (in 2006) was in the negative by $250,000. He insisted that Enron’s collapse was due to a "conspiracy" waged by short sellers, rogue executives, and the news media.[8] It was reported that Lay’s congenial

Abatement of conviction
On October 17, 2006, since Lay died prior to exhausting his appeals, his conviction was abated.[14][15] Precedent in the Fifth Circuit Court of Appeals, the federal appellate court governing the district where Lay was indicted,[16] indicates that abatement had to be automatically granted. When abatement occurs, the law views it as though he had never been indicted, tried and convicted.[17][3] The government opposed Lay’s attorneys’ motion

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From Wikipedia, the free encyclopedia
for abatement, and the Department of Justice issued a statement that it "remains committed to pursuing all available legal remedies and to reclaim for victims the proceeds of crimes committed by Ken Lay."[18][19] Civil suits are expected to continue against Lay’s estate. However, according to legal expert Joel Androphy, claimants may not seek punitive damages against a deceased defendant, only compensatory damages.[20]

Kenneth Lay
• October 2006: A federal Judge vacates conviction.

Awards and honors
• Anti-Defamation League – Torch of Liberty Award • Beta Theta Pi (Zeta Phi Chapter) – Wall of Fame • Beta Theta Pi (National Fraternity) Oxford Cup • Brunel University (London) – Honorary Doctor of Social Sciences • Child Advocates – Super Hero Honoree Award • Episcopal High School – Campaign Fundraiser Award • Gas Daily – Man of the Year Award • Horatio Alger Association of Distinguished Americans – Annual Membership Award • Houston Area Women’s Center – Honoree • Houston Children’s Chorus – Honoree • Houston Community Partners – Father of The Year • Kenneth Lay Day – Proclaimed by Kathryn J. Whitmire, Mayor of Houston, Texas • Kiwanis Club of Houston and the Greater Houston Partnership – International Executive of the Year • March of Dimes – Award of Distinction • NAACP Freedom Fund Banquet – Mickey Leland Humanitarian Award • National Conference of Christians and Jews – Brotherhood Award • Oswego State University – Honorary Doctor of Humane Letters Degree • Phi Beta Kappa – Outstanding Alumnus Award • Private Sector Council – Annual Leadership Award • Stanford Business School Alumni Associations – Houston Business Man of the Year • Texans For Lawsuit Reform – Award • Texas Association of Minority Business Enterprises – Texas Corporate Partnering Award • Texas Business Hall of Fame – Inductee • Texas Navy Admiral – Commissioned by William P. Clements, Jr., Governor of Texas • Texas Society To Prevent Blindness – Man of Vision Award • The Brookwood Community – Honoree Award

Timeline of events
• 1965: Economist, Exxon Corporation • 1969: Assistant professor, George Washington University • 1971: Assistant to a commissioner, Federal Power Commission • 1972: Undersecretary for energy issues, Department of the Interior • 1974: Vice president, Florida Gas • 1976: President, Florida Gas • 1979: Executive vice president, The Continental Group • 1981: President, chief operating officer, Transco • 1984: Chief executive officer, Houston Natural Gas • 1985: Enron formed by purchase of Houston Natural Gas by InterNorth • 1990: Chairman of the Board and chief executive officer, Enron; Co-chairman, organizing committee for G8 summit • 1992: Co-chairman, President Bush Reelection Committee; Chairman, 1992 Republican National Convention, Houston • 1993: Member, President Clinton’s ’President’s Council on Sustainable Development’ • 1994: Assists with campaign of Sheila Jackson-Lee to defeat Congressman Craig Washington • December 2000: Mentioned as a possible candidate for President Bush’s Treasury secretary • February 2001: Steps aside as CEO in favor of Jeffrey Skilling. • August 2001: Returns as CEO after Skilling’s departure. • January 2002: Under extreme pressure, Lay resigns as Enron CEO, leaves Board. • July 2004: Indicted by grand jury. • May 2006: Found guilty on ten counts of fraud and conspiracy. • July 2006: Died at age 64, near Aspen, Colorado, while on vacation.

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From Wikipedia, the free encyclopedia
• The Rotary Club of Houston – Distinguished Citizen Award • The Wall Street Transcript – Chief Executive Officer Award • United States Energy Association – United States Energy Award • U.S. Navy – Navy Commendation Medal & National Defense Service Medal • University of Colorado, College of Business and Administration – Ben K. Miller Memorial, International Business Award • University of Houston – Distinguished Alumnus Award • University of Houston – Honorary Doctor of Humane Letters Degree • University of Missouri – Honorary Doctor of Law Degree; The Hebert J. Davenport Society Benefactor Award • Volunteer Houston – Honoree Award

Kenneth Lay
lay6jul06,1,4669506.story?coll=laheadlines-frontpage. Retrieved on 2006-06-06. [4] Lozano, Juan A. (17 October 2006). "Judge vacates conviction of Ken Lay". Associated Press. http://www.cbsnews.com/stories/2006/ 10/17/ap/business/ mainD8KQMS5O0.shtml. [5] "Kenneth Lay: Bush Pioneer". Texans for Public Justice. http://www.tpj.org/ pioneers/kenneth_lay.html. Retrieved on 2006-06-07. [6] OsterDowJones. (Dec. 14, 2000) Who will Bush pick to run Treasury? [7] "Dan Ackman, "Lay Lays an Egg"". Forbes.com, Feb. 2, 2002. http://www.forbes.com/2002/02/05/ 0205topnews.html. [8] Jeremy W. Peters and Simon Romero (5 July 2006). "Enron Founder Dies Before Sentencing". The New York Times. http://www.nytimes.com/2006/07/05/ business/05cnd-lay.html. Retrieved on 2006-06-06. [9] "Enron founder Ken Lay dies". 5 July 2006. http://money.cnn.com/2006/07/05/ news/newsmakers/lay_death/. [10] Moreno, Sylvia (July 13, 2006). "Lay Is Remembered As a ’Straight Arrow’". The Washington Post. http://www.washingtonpost.com/wp-dyn/ content/article/2006/07/12/ AR2006071201776_pf.html. Retrieved on 2006-07-13. [11] "Lay victim of `lynching,’ speaker at service says". The Chicago Tribune. July 13, 2006. http://www.chicagotribune.com/business/ chi-0607130116jul13,1,5900234.story. Retrieved on 2006-07-13. [12] "Ken Lay’s memorial attracts power elite". CNN. July 12, 2006. http://money.cnn.com/2006/07/12/news/ newsmakers/lay.reut/. Retrieved on 2006-07-13. [13] "Enron’s Kenneth Lay Defended at His Memorial Service". Bloomberg. July 12, 2006. http://www.bloomberg.com/apps/ news?pid=20601103&sid=ahb42J1i1j3M&refer=us. Retrieved on 2007-07-09. [14] "Judge Vacates Conviction". The New York Times. October 17, 2006. http://www.nytimes.com/aponline/ business/AP-Enron-Lay.html. Retrieved on 2006-10-17.

Trivia
• The Ken Lay YMCA in Cinco Ranch in unincorporated Harris County, Texas was named after Ken Lay. Following the collapse of Enron and Lay’s subsequent accusations of fraud and questionable accounting tactics, the name outside the building was made 70% smaller. Lay later asked for his name to be removed from the YMCA in June 2006. The YMCA is, as of 2006, called the "Katy Family YMCA" after the city of Katy.

See also
• Timeline of the Enron scandal

References
[1] Crawford, Kristen (2004-07-12). "Lay surrenders to authorities". CNN Money. http://money.cnn.com/2004/07/08/news/ newsmakers/lay/. Retrieved on 2006-05-25. [2] ^ Pasha, Shaheen and Jessica Seid (2006-05-25). "Lay and Skilling’s day of reckoning". CNN Money. http://money.cnn.com/2006/05/25/news/ newsmakers/enron_verdict/index.htm. Retrieved on 2006-05-25. [3] ^ "Death Puts Lay Conviction in Doubt". Los Angeles Times. July 6, 2006. http://www.latimes.com/news/ printedition/front/la-fi-

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[15] "Experts See Lay’s Death Erasing Conviction". The New York Times. July 7, 2006. http://www.nytimes.com/aponline/ business/AP-Lay-Whats-Next.html. Retrieved on 2006-06-07. [16] See United States v. AssetPDF (37.1 KiB), 990 F.2d 208 (5th Cir. 1993); United States v. Estate of ParsonsPDF (146 KiB), 367 F.3d 409 (5th Cir. 2004). [17] Can’t the Feds Get Lay’s Money? Slate, as corrected July 7, 2006. [18] Hays, Kristen (August 16, 2006). "Prosecutors to oppose wiping Lay’s record clean". Chicago Sun-Times. http://www.suntimes.com/output/news/ lay16.html. Retrieved on 2006-08-16. [19] Associated Press (August 16, 2005). "Prosecutors will oppose clearing Lay’s record, filing says". USA today. http://www.usatoday.com/money/ industries/energy/2006-08-16-layprosecution_x.htm?POE=MONISVA. Retrieved on 2006-10-10. [20] "Enron founder Ken Lay dies". CNN.com. July 5, 2006. http://money.cnn.com/2006/ 07/05/news/newsmakers/lay_death/ index.htm?cnn=yes. Retrieved on 2006-06-06.

Kenneth Lay

External links
• Ken Lay profile at NNDB • US v. Skilling and Lay, indictment document (2.3MB PDF). • Autopsy of Enron’s Lay shows severe artery blockage • Film documentary: The Smartest Guys in the Room • Calling Inquiries a Distraction, Enron Chief Quits Under Pressure, The New York Times, January 24, 2002 • Ken Lay’s political donations • Alternative History: Treasury Secretary Ken Lay • CNN Money: Jury selected in Lay’s trial • Ken Lay’s Political Campaign Contributions • Some charges dropped, Enron prosecution rests • MSNBC: Lay, Skilling guilty in Enron Scandal • Enron’s Founder Kenneth Lay, 64, Dies in Colorado • No Redemption Now: Thoughts on the Death of Ken Lay, JURIST • The Times, Obituary • Mises Economics Blog, Is Ken Lay A Criminal? By William Anderson

Retrieved from "http://en.wikipedia.org/wiki/Kenneth_Lay" Categories: 1942 births, 2006 deaths, American chief executives, American energy industry executives, American Enterprise Institute, American fraudsters, Bush Pioneers, Deaths from myocardial infarction, Enron, George Washington University faculty, Eli Lilly and Company, People from Harris County, Texas, University of Missouri–Columbia alumni, University of Houston alumni, Board of Regents of the University of Houston This page was last modified on 18 May 2009, at 14:11 (UTC). All text is available under the terms of the GNU Free Documentation License. (See Copyrights for details.) Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a U.S. registered 501(c)(3) taxdeductible nonprofit charity. Privacy policy About Wikipedia Disclaimers

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