Enron Corp. founder Kenneth Lay has died of a heart attack, according to press reports Wednesday, just weeks after he was convicted of fraud and conspiracy in connection with the collapse of the one-time energy giant. He was 64.
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Lay reportedly suffered a massive heart attack at his vacation home in Colorado, while awaiting sentencing to come Oct. 23, for his May conviction on all six counts of conspiracy, wire fraud and securities fraud related to the 2001 bankruptcy of the Houston energy company. Lay was convicted alongside former CEO Jeffrey Skilling, who was himself found guilty on 18 counts of conspiracy, securities fraud and making false statements to auditors, along with a single count of insider trading.
During the months-long trial, Lay blamed the press and short sellers for Enron's demise.
Lay was facing a maximum of 45 years in prison after a four-year government investigation, a 16-week trial and five days of deliberations among jurors. He was free on a $5 million bond backed by his children's homesteads. Skilling faces 185 years in prison if convicted.
Separately, U.S. District Judge Simeon Lake III, who also oversaw the Enron trial, found Lay guilty on all four counts of bank fraud and making false statements in a trial with no jury, which carries a maximum of 30 years.
Lay established Enron in 1985, overseeing a merger of Houston Natural Gas, where he served as CEO, with InterNorth, which was a collection of elecrtic and gas utilities.
The collapse of the merged entity nearly two decades later is considered one of the largest corporate scandals in history.
Lay was born into humble beginnings in Tyrone, Mo. He attended the University of Missouri and also served in the Navy. In the 1970s, he worked as a federal energy regulator and as an undersecretary in the Department of the Interior.
| Dealwatch executive summary |
The Date |
The Action |
| 7.05.06 |
Lay reportedly dead of a heart attack. |
| 5.25.06 |
Enron jury reaches verdict; finds Lay and Skilling guilty. |
| 5.17.06 |
Enron jury heads to deliberations. |
| 5.01.06 |
Lay defends his Enron stock sales. |
| 4.21.06 |
Character witnesses testify for Lay. |
| 4.17.06 |
Lay blames press for Enron's failure. |
| 1.30.06 |
Jury selection for Enron trial kicks off. |
Source: The Deal |
