Sources: Lay Indicted in Enron's Collapse

Yahoo ^ | 7/7/04 | Kristen Hays - AP

[NormsRevenge]

HOUSTON - Enron Corp. founder and former chairman Kenneth Lay was expected to surrender Thursday on charges stemming from the company's collapse, 2 1/2 years after the federal government launched its painstaking investigation, sources close to the case told The Associated Press.

Two sources who spoke on condition of anonymity said an indictment against Lay, 62, was expected to be unsealed upon or shortly after his surrender to the FBI (news - web sites).

Prosecutors from the Justice Department (news - web sites)'s Enron Task Force presented an indictment to U.S. Magistrate Judge Mary Milloy in Houston on Wednesday. At their request, the judge sealed both the indictment and an arrest warrant. But prosecutors noted "the defendant" would surrender voluntarily.

A hearing before Milloy was scheduled for late Thursday morning.

[NormsRevenge]

Former Enron CEO Kenneth Lay listens to Senators give their opening statements before he pleaded Fifth Amendment and declined to testify before Congress Tuesday, Feb. 12, 2002, in Washington. (AP Photo/Ron Edmonds)

---

Former Enron CEO Ken Lay leaves church, bible in hand, in this Sunday Feb. 17, 2002, in downtown Houston. Sources tell The Associated Press that former Enron Corp. chairman Kenneth Lay has been indicted on criminal charges related to the energy company's collapse. (AP Photo/Michael Stravato, file)

[NormsRevenge]

Former Enron Corp. Chairman Ken Lay is expected to be indicted next week over his role in the scandal that rocked corporate America, sources familiar with the matter said July 2, 204.

Lay waits before being called to testify before a U.S. Senate committee investigating the financial collapse of the company on Capitol Hill, February 12, 2002. Photo by Larry Downing/Reuters

[NormsRevenge]

[Mr. K]

Can anyone explain what went on here?

[jojodamofo]

I know it's a political necessity, but really I don't like the way this is going down at all. With Iraq, people had pretty much forgotten the whole Enron mess -- they must have figured Kerry was going to make an issue out of this.

[deport]

I know it's a political necessity, but really I don't like the way this is going down at all.

---

What is it about indicting someone that has potential criminal liabilities and maybe ruined many peoples lives has you so concerned about the 'way this is goind down'?

Justice grinds slowly and this grand jury is about to finish it's work.

[Joe Hadenuf]

The pic of Ken Lay walking around with the Bible is almost to much.

[Steve_Seattle]

"2 1/2 years after the federal government launched its painstaking investigation,"

It's interesting - not once have I heard anyone complain about the cost of this investigation (and I'm not complaining, either). But cost was always a big issue when Kenneth Starr was doing his investigations.

[lewislynn]

It's interesting - not once have I heard anyone complain about the cost of this investigation

That's because the cost of NOT investigating these kinds of things is far greater...

[BigSkyFreeper]

Yeah. So much for the Commandment "Thou Shalt Not Steal".

[lewislynn]

The pic of Ken Lay walking around with the Bible is almost to much.

reminds me of the big phony, Clinton.

It doesn't look favorable for (as GW called him) "Kenny boy".

[drypowder]

It's about time! Now, what about the billionaire World Com CEO? I haven't heard any news on that guy other than he lives in a $7,000,000.00 house in Texas and is a personal friend of the Bushes.

[jojodamofo]

I just don't think that labeling Lay a criminal and putting him back in the forefront of the public eye will help the President. Certainly, some of Lay's underlings engaged in questionable behavior. But Ken Lay has PERSONALLY done a lot of good for the President, and by extension for the country as a whole. Especially since the election was decided by only a handful of votes.

In any event, the real crime here is that the Enron employees did not insist on diversifying their retirement plans. Lay should not go to prison over that.

[deport]

In any event, the real crime here is that the Enron employees did not insist on diversifying their retirement plans. Lay should not go to prison over that.

---

Nor do I expect any of the indictments coming from this grand jury to have that as their basis... Tomorrow by noon or so Houston time we'll know what he's accused of and not what we speculate it is..... Then he'll get his chance to cop a plea or face a jury of his peers...... Being the lead dog doesn't absolve him from responsibility......

[Bonaparte]

"Certainly, some of Lay's underlings engaged in questionable behavior."
_______________________________________________________________

You are living in a fantasy world.

Questionable? Will you settle for felonious?

Enron Criminal Cases:
1. Plea Agreement & Statement (U.S. v. Andrew Fastow) (Jan. 14, 2004)
2. Plea Agreement (U.S. v. Lea Fastow) (Jan. 14, 2004)
3. Indictment (U.S. v. Bayly, et al.) (Ex-Merrill Lynch Execs) (Sep. 16, 2003)
4. Plea Agreement (U.S. v. Ben Glisan) (Sep. 10, 2003)
5. Statement (U.S. v. Ben Glisan) (Sep. 10, 2003)
6. Superseding Indictment (U.S. v. Andrew Fastow, et al.) (Apr. 30, 2003)
7. Indictment (U.S. v. Lea Fastow) (Apr. 30, 2003)
8. Superseding Indictment (U.S. v. Kenneth Rice, et al.) (Apr. 29, 2003)
9. Grand Jury Indictment (broadband fraud) (U.S. v. Howard, Krautz) (Mar. 26, 2003)
10. Complaint (S.E.C. v. Howard and Krautz) (Mar. 11, 2003)
11. Plea Agreement (U.S. v. Richter) (Feb. 4, 2003)
12. Criminal Information (U.S. v. Richter) (Feb. 4, 2003)
13. Criminal Information (U.S. v. Lawyer) (Nov. 26, 2002)
14. Indictment (U.S. v. Fastow) (Oct. 31, 2002)
15. Plea Agreement (US v. Belden) (Oct. 17, 2002)
16. Criminal Information (US v. Belden) (Oct. 17, 2002)
17. Criminal Complaint (US v. Fastow) (Oct. 1, 2002)
18. Indictment (UK bankers charged over dealings with Enron's Michael Kopper) (US v. David Bermingham, Giles Darby, and Gary Mulgrew) (Sep. 12, 2002)
19. Criminal Information (US v. Kopper) (Aug. 21, 2002)
20. Cooperation Agreement (US v. Kopper) (Aug. 21, 2002)
21. Affidavit in Support of Criminal Complaint (US v. Mulgrew, et al.) (June 27, 2002)

When you finish reading these, I'll send you more.
__________________________________________________________________

"...Ken Lay has PERSONALLY done a lot of good for the President, and by extension for the country as a whole."
___________________________________________________________________

Ken Lay feathered his nest and peddled his influence with both political parties, just like every corporate executive in the country does. You are arguing that this gives him a get-out-of-jail-free card. To his credit, George Bush does not agree with you, even though Bill Clinton would have.

But don't worry, Lay won't serve anywhere near as much time as he should.

[EVO X]

Can anyone explain what went on here

I would suspect they indicted him over violating securities laws.

[SeattleNeedsHelp]

http://oblivio.com/images/schultz.jpg

I KNOW NOTHING!

[Happy2BMe]

The timing of Kenneth Lay's arrest for "Big Corporate Executive American Corruption" is very important to Bush's win this November and will be percieved as a "good thing" at the polls - ping.

_______________________________________

HOUSTON

Kenneth Lay, the founder and former chairman and CEO of Enron Corp. who says he committed no crimes at the scandal-ridden energy company, has been indicted on criminal charges, sources told The Associated Press.

The highly anticipated action came Wednesday, two and a half years into a methodical investigation that has produced charges against some of Lay's once most highly trusted lieutenants, including his hand-picked protege, former CEO Jeffrey Skilling.

"I have done nothing wrong, and the indictment is not justified," Lay, 62, said in a statement Wednesday after learning of the indictment. The indictment was to be unsealed after Lay surrenders to the FBI early Thursday.

Prosecutors from the Justice Department's Enron Task Force presented an indictment to U.S. Magistrate Judge Mary Milloy in Houston on Wednesday, and at their request she sealed both the indictment and an arrest warrant, the sources said. The specific charges remained under seal.

A hearing before Milloy was scheduled for 11:30 a.m. CDT Thursday. Lay's lawyer, Michael Ramsey, didn't immediately return calls for comment.

The Securities and Exchange Commission also was expected to bring civil fraud charges against Lay on Thursday, including making false and misleading statements and insider trading, a person familiar with the case said, speaking on condition of anonymity.

Prosecutors have aggressively pursued the one-time celebrity CEO and friend and contributor to President Bush who led Enron's rise to No. 7 in the Fortune 500 and resigned within weeks of its stunning failure. Lay is the 30th and highest-profile individual charged.

Skilling succeeded Lay as CEO in February 2001 and resigned abruptly six months later, just weeks before the scandal broke. He was indicted in February on nearly three dozen counts of fraud and other crimes.

Waiting to testify for the prosecution is former finance chief Andrew Fastow, who pleaded guilty to two conspiracy counts in January. Fastow admitted to orchestrating partnerships and financial schemes to hide Enron debt and inflate profits while pocketing millions of dollars for himself.

Enron's collapse led a series of corporate scandals that prompted Congress' passage of sweeping reforms to securities laws with the Sarbanes-Oxley Act two years ago. Thousands of Enron's workers lost their jobs, and the stock fell from a high of $90 in August 2000 to just pennies, wiping out many workers' retirement savings.

The charges against Skilling and former top accountant Richard Causey - who was indicted a week after Fastow pleaded guilty - target actions over several years leading up to Enron's collapse. But allegations against Lay were expected to focus on his actions after he resumed the role of CEO upon Skilling's abrupt resignation in August 2001, the sources said.

Days after Skilling's resignation, Lay met privately with Sherron Watkins, then an executive on Fastow's staff, who had sent him a lengthy memo warning of impending doom from Fastow's myriad schemes to hide debt and inflate profits.

But Lay told The New York Times last month that he didn't believe the company had serious problems and trusted other senior managers - including Fastow and Causey - when they reassured him that all was fine.

Skilling and Causey are awaiting trial on charges of conspiracy, fraud and insider trading. Both pleaded innocent and are free on bond.

---

[TX Bluebonnet]

Did you see the news conference in Houston? It was on the local Houston station when I was home at lunch. The justice department spokesman said the investigation was ongoing. Do you think that means they are going after someone else, or that more charges might be filed later. I kind of thought when they got to Ken Lay, that would be the end of the line.

Anyone, anyone???

[Bonaparte]

Skilling and others have rolled over on Lay and the evidence must be a lock or there would be no indictment. Lay himself probably has the goods on others, perhaps some bankers who acted as co-conspirators in Enron's fraudulent schemes. He may be willing to cut a deal and rat them out.

Another possibility is that they are still digging up dead bodies around Ken Lay's feet and may tack on additional charges later.