LAYMAN
HOUSTON AP:
ENRON CORP. founder Ken-neth Lay, who was convicted of helping to perpetuate one of the most sprawling business frauds in U.S. history, died Wednesday in Aspen, Colorado He was 64.
Lay died of a heart attack, his pastor in Houston said.
"Apparently, his heart simply gave out," said Pastor Steve Wende of Houston's First United Methodist Church. Lay, who lived in Houston, frequently vacationed in Colorado.
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.
"No, I don't have any comment," he said quietly.
Prosecutors in Lay's trial also declined comment Wednesday, both on his unexpected death and what may become of the Government's effort to seek a $43.5 million judgement from Lay that they say he pocketed as part of the conspiracy. Lay's death will not affect their case against Skilling.
Both were scheduled to be sentenced October 23. Lay faced decades in prison, as does Skilling.
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 number seven on the Fortune 500 in 2000 and claimed $101 billion in annual revenues. Lay travelled in the highest business and political circles.
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.
