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==Trivia== | ==Trivia== | ||
*The Ken Lay ] in ] in unincorporated ], ] was named after Ken Lay. Lay asked for his name to be removed from the YMCA in ] ]. The YMCA is, as of 2006, called the "Katy Family YMCA" after the city of ]. | *The Ken Lay ] in ] in unincorporated ], ] was named after Ken Lay. Lay asked for his name to be removed from the YMCA in ] ]. The YMCA is, as of 2006, called the "Katy Family YMCA" after the city of ]. | ||
*Lay recruited fellow ] fraternity brother ] to work at ]. | |||
==See also== | ==See also== |
Revision as of 09:54, 17 June 2006
Kenneth Lee Lay (born April 15, 1942), (a.k.a. Ken Lay) is a former American businessman, most notable as the former Chairman and CEO of Enron Corporation. Ken Lay and Enron became synonymous with corporate abuse and accounting fraud following the collapse of Enron in 2001. Lay was the CEO and chairman of the company from 1986 until his resignation on January 23, 2002, except for a few months in 2001 when he was chairman and Jeffrey Skilling was CEO.
On July 7, 2004, he was indicted by a grand jury on 11 counts of securities fraud and related charges.. On January 31, 2006, following four and a half years of preparation by government prosecutors, Lay's and Skilling's trial began in Houston. Judge Sim Lake dismissed one charge of securities fraud against Lay on March 26, after the government rested its case. After 56 days of testimony and six days of jury deliberation, Lay was found guilty on May 25, 2006, of all 10 remaining counts against him. The jury convicted Lay of one count of conspiracy, three counts of securities fraud, and two counts of wire fraud; in a separate bench trial, Judge Sim Lake found Lay guilty on three counts of making false statements to banks and one count of bank fraud. Because each count carries a maximum 5- to 10-year sentence, legal experts say Lay could face 20 to 30 years in prison.
A number of books have been written on Lay and Enron including Conspiracy of Fools (2005), Icarus in the Boardroom, The Smartest Guys in the Room (2003), and 24 Days. The Smartest Guys in the Room was adapted into a documentary film entitled Enron: The Smartest Guys in the Room, released in 2005.
Early life and career
Lay was born into a poor family in Tyrone, Missouri. His father was a Baptist preacher and some-time tractor salesman. He has been described by his undergraduate classmates at the University of Missouri as industrious and high-minded, and served as president of the Zeta Phi chapter of the Beta Theta Pi fraternity at the University of Missouri and got his doctorate in economics at University of Houston in 1970.
Lay worked in the early ‘70s as a federal energy regulator. By the Reagan administration, when energy was deregulated, Lay was already an energy company executive and he took advantage of the new climate by merging Houston Natural Gas Co. with Nebraska-based Inter-North to form Enron.
Lay was one of America's highest-paid CEOs, earning (for example) a $42.4 million compensation package in 1999. Lay sold large amounts of his Enron stock in September and October of 2001 as its price fell, while encouraging employees to buy more stock, telling them the company would rebound. Lay liquidated more than $300 million in Enron stock from 1989 to 2001, mostly in stock options.
Indictment and trial
On July 7, 2004, Lay was indicted by a grand jury in Houston, Texas, for his role in Enron's collapse. Lay was charged, in a 65-page indictment, with 11 counts of securities fraud, wire fraud, and making false and misleading statements. The trial commenced on January 30, 2006, in Houston, despite repeated protests from defense attorneys calling for a change in venue on the grounds that that "it was impossible to get a fair trial in Houston – the epicenter of Enron's collapse. Enron's bankruptcy, the biggest in U.S. history when it was filed in December 2001, cost 4,000 employees their jobs and many of them their life savings. Investors lost billions." During his trial, Lay claimed that in 2001 Enron stock made up about 90 percent of his wealth, and that his current net worth (in 2006) was in the negative by $250,000. On May 25, 2006, Lay was found guilty on all six counts of conspiracy and fraud by a jury of eight women and four men. In a separate bench trial, Judge Lake ruled Lay was guilty of four counts of fraud and false statements. It was reported that Lay's congenial reputation took a blow as he appeared confrontational and irritable at several points during his testimony. Sentencing is scheduled to take place on October 23, 2006 at 1 p.m.
Education
Hickman High School - Columbia, MO
- B.A., University of Missouri, 1964
- M.A., University of Missouri, 1965
- PhD, University of Houston, 1970
Career highlights
- 1965: Economist, Exxon Corporation
- 1969: Assistant professor, George Washington University
- 1971: Assistant to a commissioner, Federal Power Commission
- 1972: Undersecretary for energy issues, Department of the Interior
- 1974: Vice president, Florida Gas
- 1976: President, Florida Gas
- 1979: Executive vice president, The Continental Group
- 1981: President, chief operating officer, Transco
- 1984: Chief executive officer, Houston Natural Gas
- 1985: Enron formed by merger of Houston Natural Gas and InterNorth
- 1990: Chairman of the board and chief executive officer, Enron co-chairman, organizing committee for G-7 summit
- 1992: Co-chairman, President Bush Re-election Committee chairman, 1992 Republican National Convention, Houston
- 1994: Assists with campaign of Sheila Jackson-Lee to defeat Congressman Craig Washington
- 2001: Jeffrey Skilling becomes CEO of Enron for a few months
- Lowlights
- 2002: Amid extreme pressure, Lay resigns as Enron CEO, leaves board
- 2004: Indicted by grand jury
- 2006: Found guilty on nine counts of fraud and conspiracy
Trivia
- The Ken Lay YMCA in Cinco Ranch in unincorporated Fort Bend County, Texas was named after Ken Lay. Lay asked for his name to be removed from the YMCA in June 2006. The YMCA is, as of 2006, called the "Katy Family YMCA" after the city of Katy.
- Lay recruited fellow Beta Theta Pi fraternity brother Jeffrey Skilling to work at Enron.
See also
References
- Crawford, Kristen (2004-7-12). "Lay surrenders to authorities". CNN Money. Retrieved 2006-5-25.
{{cite web}}
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(help) - ^ Pasha, Shaheen and Jessica Seid (2006-5-25). "Lay and Skilling's day of reckoning". CNN Money. Retrieved 2006-5-25.
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External links
- Ken Lay's official site
- US v. Skilling and Lay, indictment document (2.3MB PDF).
- Film documentary: The Smartest Guys in the Room
- Calling Inquiries a Distraction, Enron Chief Quits Under Pressure, The New York Times, January 24, 2002
- Is Ken Lay a Criminal?
- Template:Nndb name
- Ken Lay's political donations
- Alternative History: Treasury Secretary Ken Lay
- Jury selected in Lay's trial
- Ken Lay's Political Campaign Contributions
- Some charges dropped, Enron prosecution rests
- Lay, Skilling guilty in Enron Scandal