Enron founder Ken Lay dies of heart attack

estranged4life · #1 07-05-2006, 12:01 PM

Enron's Ken Lay is dead

Ex-Enron exec convicted of helping perpetuate huge business fraud

HOUSTON - Enron Corp. founder Kenneth Lay, who was convicted of helping perpetuate one of the most sprawling business frauds in U.S. history, died Wednesday of a heart attack in Colorado. He was 64.

The Pitkin, Colo., Sheriff's Department said officers were called to Lay's house in Old Snowmass, Colo., shortly after 1 a.m. Mountain time. He was taken to Aspen Valley Hospital, where he was pronounced dead at 3:11 a.m. Lay, who lived in Houston, frequently vacationed in Colorado.

Family spokeswoman Kelly L. Kimberly issued a statement saying, "Ken Lay passed away early this morning in Aspen. The Lays have a very large family with whom they need to communicate. And out of respect for the family, we will release further details at a later time."

Pastor Steve Wende of First United Methodist Church of Houston, said in a statement that church member Lay died unexpectedly of a "massive coronary."

Wende said Lay and his wife, Linda, were in Colorado for the week "and his death was totally unexpected. Apparently, his heart simply gave out."

Lay was scheduled to be sentenced Oct. 23. He faced decades in prison.

Lay led Enron's meteoric rise from a staid natural gas pipeline company formed by a 1985 merger to an energy and trading conglomerate that reached No. 7 on the Fortune 500 in 2000 and claimed $101 billion in annual revenues. He traveled in the highest business and political circles.

For many years, his corporation was the single biggest contributor to President Bush, who nicknamed him "Kenny Boy."

Lay was convicted May 25 along with former Enron CEO Jeffrey Skilling of defrauding investors and employees by repeatedly lying about Enron's financial strength in the months before the company plummeted into bankruptcy protection in December 2001. Lay was also convicted in a separate non-jury trial of bank fraud and making false statements to banks, charges related to his personal finances.

Skilling, reached by telephone at his home in Houston, told The Associated Press that he was aware of Lay's death, but declined further comment.

While Ken Lay's death ends part of the criminal case against him, there are a couple of issues to resolve. First, the government has filed a motion seeking at least $43 million in Lay's assets. Prosecutors claim he illegally benefited from a line of credit he used at Enron. They also seek money he received in bonuses. The government must decide whether to continue to seek forfeiture of those assets from Lay's estate.

Second, there's the question of what Lay's death will mean to further proceedings against former Enron CEO Jeffrey Skilling. His lawyers might seek to delay sentencing.

Prosecutors in Lay's trial declined comment Wednesday, both on his unexpected death and what may become of the government's effort to seek a $43.5 million judgment from Lay that they say he pocketed as part of the conspiracy.

Burt Palmer, the church's executive pastor, told The Associated Press that the Lays attended church in Houston on Sunday. "The church continues to love them and help them walk through this difficult time."

Pat Worcester, executive assistant to CEO at Aspen Valley Hospital, said Lay was admitted into the emergency room at 3:10 a.m. Wednesday. She said the hospital would release a statement later.

Lay had built Enron into a high-profile, widely admired company, the seventh-largest publicly traded in the country. But Enron collapsed after it was revealed the company's finances were based on a web of fraudulent partnerships and schemes, not the profits that it reported to investors and the public.

When Lay and Skilling went on trial in U.S. District Court Jan. 30, it had been expected that Lay, who enjoyed great popularity throughout Houston as chairman of the energy company, might be able to charm the jury. But during his testimony, Lay ended up coming across as irritable and combative.

He also sounded arrogant, defending his extravagant lifestyle, including a $200,000 yacht for wife Linda's birthday party, despite $100 million in personal debt and saying "it was difficult to turn off that lifestyle like a spigot."

Both he and Skilling maintained that there had been no wrongdoing at Enron, and that the company had been brought down by negative publicity that undermined investors' confidence.

His defense didn't help his case with jurors.

"I wanted very badly to believe what they were saying," juror Wendy Vaughan said after the verdicts were announced. "There were places in the testimony I felt their character was questionable."

Lay was born in Tyrone, Mo. and spent his childhood helping his family make ends meet. His father ran a general store and sold stoves until he became a minister. Lay delivered newspapers and mowed lawns to pitch in. He attended the University of Missouri, found his calling in economics, and went to work at Exxon Mobil Corp. predecessor Humble Oil & Refining upon graduation.

He joined the Navy, served his time at the Pentagon, and then served as undersecretary for the Department of the Interior before he returned to business. He became an executive at Florida Gas, then Transco Energy in Houston, and later became CEO of Houston Natural Gas. In 1985, HNG merged with InterNorth in Omaha, Neb. to form Enron, and Lay became chairman and CEO of the combined company the next year.

© 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

gldstwmn · #2 07-05-2006, 12:18 PM

May he rest in peace.

GODDESS6 · #3 07-05-2006, 01:49 PM

wow, what a shock, i am sure what happened w/ him & all that followed & the thought of going to prison weighed hard on him~

i live in omaha & he once had business ties here, there were some enron shareholders here who were hurt by what happend w/ the company~

strandinthewind · #4 07-05-2006, 02:40 PM

Quote:

Originally Posted by gldstwmn

May he rest in peace.

I would like to be so big - but, having personally lost money and seen people lose retirements, etc. - I want to say rot in Hell MF'er

But, RIP is good enough I guess.

DavidMn · #5 07-05-2006, 02:58 PM

Quote:

Originally Posted by gldstwmn

May he rest in peace.

I'm impressed with your kindness. I dont know if I could be so magnanamous. I guess what I woul say to Mr Lay is what you do always comes back to you.

SuzeQuze · #6 07-05-2006, 04:02 PM

Quote:

Originally Posted by strandinthewind

I would like to be so big - but, having personally lost money and seen people lose retirements, etc. - I want to say rot in Hell MF'er

But, RIP is good enough I guess.

That karma's a b*tch. But his poor family.

DavidMn · #7 07-05-2006, 04:13 PM

Quote:

Originally Posted by SuzeQuze

That karma's a b*tch. But his poor family.

I hope all the Fake death BS doesnt take hold. I could almost see this turing into another Elvis.

gldstwmn · #8 07-05-2006, 04:42 PM

Quote:

Originally Posted by strandinthewind

I would like to be so big - but, having personally lost money and seen people lose retirements, etc. - I want to say rot in Hell MF'er

But, RIP is good enough I guess.

All things considered, this is the best possible thing that could have happened to him.

strandinthewind · #9 07-05-2006, 08:55 PM

Quote:

Originally Posted by gldstwmn

All things considered, this is the best possible thing that could have happened to him.

I agree. He was going up the river until his death. Granted, it would not have been in a hard labor facility. But, it would still be prison.

Of course, my foil hat is picking up a signal that he, like Elvis, is not really dead and this is all a W lead conspiracy to let Lay avoid prison

gldstwmn · #10 07-05-2006, 09:51 PM

Quote:

Originally Posted by strandinthewind

I agree. He was going up the river until his death. Granted, it would not have been in a hard labor facility. But, it would still be prison.

Of course, my foil hat is picking up a signal that he, like Elvis, is not really dead and this is all a W lead conspiracy to let Lay avoid prison

It seems that is a popular opinion. I have to say though that I think he is really dead.

David · #11 07-06-2006, 12:17 PM

Good riddance to this disgusting person.

chiliD · #12 07-06-2006, 12:42 PM

Quote:

Originally Posted by DavidMn

I hope all the Fake death BS doesnt take hold. I could almost see this turing into another Elvis.

I seriously doubt we'll be reading about Ken Lay sightings at a 7-11 in Memphis.

DavidMn · #13 07-06-2006, 02:37 PM

Quote:

Originally Posted by chiliD

I seriously doubt we'll be reading about Ken Lay sightings at a 7-11 in Memphis.

The funniest rumor heard yesterday was that he's off to the hills of Pakistan. Guess who else is there?

tynan88 · #14 07-06-2006, 09:40 PM

Quote:

Originally Posted by DavidMn

The funniest rumor heard yesterday was that he's off to the hills of Pakistan. Guess who else is there?

Well we have never seen the two of them together so who knows...

As far as Ken Lay goes, it's generally sad for someone to die, but he did take advantage of so many so it is a difficult one to know where to stand.

SteveMacD · #15 07-07-2006, 09:49 PM

Quote:

Originally Posted by strandinthewind

Of course, my foil hat is picking up a signal that he, like Elvis, is not really dead and this is all a W lead conspiracy to let Lay avoid prison

Sorry to burst your bubble, but I have photographic evidence that Elvis did in fact die. This evidence proves beyond a shadow of a doubt that the Elvis left the present tense a long, LONG time ago.

WARNING: The images below are disturbing and not for the faint of heart. Ledgie discretion is advised.