Posted on 04/18/2007 7:29:14 AM PDT by Orange1998
(4/18/07 - HOUSTON) - The widow of Enron Corp.'s founder Kenneth Lay said that she and not her husband is the owner of nearly $13 million in assets the federal government is trying to seize.
The assets are the target of a civil forfeiture action against his estate by the federal government in its efforts to recover $12.7 million it claims were "proceeds of the fraud proven in the criminal case against Lay."
Federal prosecutors were forced to file the civil action after Lay's convictions for his role in Enron's collapse were vacated following his death last year.
In a court filing on Monday, his widow, Linda Lay, asserted she is the "rightful owner" of the assets the government is trying to seize.
Prosecutors are looking to take three things: $2.5 million of the value of the couple's condominium in one of Houston's most exclusive high-rises; $10.2 million from a partnership named for both the Lays; and nearly $23,000 in a bank account.
Linda Lay's attorney, David Jones, said in the filing that Kenneth Lay's 50 percent share of both the condominium and the bank account were transferred to his client after the Enron founder's death.
"Mr. Lay owned no interest in the partnership at the time of his death," Jones said. "...Ms. Lay demands the return of these properties and assets."
In his will, Kenneth Lay left all of his assets to his wife.
A spokesman for the Justice Department did not immediately return a telephone call seeking comment late Tuesday.
Kenneth Lay, 64, died of heart disease July 5 while vacationing in Aspen, Colo. He had been convicted of 10 counts of fraud, conspiracy and lying to banks in two separate cases in May.
In October, U.S. District Judge Sim Lake said Lay's death vacated his conviction on fraud and conspiracy charges because Lay couldn't challenge the conviction.
Lake's ruling stopped the government's efforts through the criminal courts to seek millions more in ill-gotten gains prosecutors allege Lay pocketed by participating in Enron's fraud.
Enron, once the nation's seventh-largest company, crumbled into bankruptcy proceedings in December 2001 when years of accounting tricks could no longer hide billions in debt or make failing ventures appear profitable.
Enron's collapse wiped out thousands of jobs, more than $60 billion in market value and more than $2 billion in pension plans.
This woman needs to get a job. It’s not her money.
Lay’s death vacated his conviction on fraud and conspiracy charges because Lay couldn’t challenge the conviction.
If Lay couldn’t challenge the conviction, the conviction was vacated (ie null, void) ... wouldn’t that be the end?
What if, IF, Lay’s not guilty?
Whosever money it is, it is not the GOVT’s.
I still do not think that he died.
Your probably right... it’s the lawyers money.
You got to be kidding me. He was found Guilty by a Jury after all the facts came out. Skilling is challenging the conviction while in prison something Lay could not bear.
Listen, her dead husband stole this money fair and square. Thieves’ honor. They were “broke” as the lady claimed, certainly broke by the standards of multimillionaires with a measly $17 million.
“Whosever money it is, it is not the GOVT’s.”
Ditto!
Found guilty or not isn’t what the Judge ruled. Vacated is vacted. That means null and void. End of game.
So how do you decide how much of that money was accumulated through his legitimate compensation as CEO and through legitimate investments vs what portion was “stolen”? What is that answer — just let the government confiscate it? How much of the joint assets of you and your spouse do you think your spouse should be able to keep if you were to suddenly die?
So if you were to die suddenly, your dying thought would be "my wife needs to get a job; the estate isn't her money"?
If they were ill gotten gains, screwing thousands of shareholders or pension holders....out of guilt and repentance, yeah.
Hmmm, no mention of how much she received from any life insurance policies.
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