Ottawa Citizen

U. S. sues Ken Lay’s estate


The U. S. government is suing the estate of Enron Corp.’ s deceased founder, Kenneth Lay, seeking to strip it of $ 12.7 million U. S. in ill- gotten gains from an accounting fraud that investors claim cost them $ 30 billion. Prosecutor­s linked the suit filed yesterday to the Oct. 17 voiding of Mr. Lay’s conviction on 10 counts of conspiracy, securities fraud and bank fraud. A federal judge tossed out the May verdict on grounds Mr. Lay hadn’t had a chance to appeal it before he died of heart disease in July. The ruling blocked the government’s effort to seize the estate’s assets in the criminal case.

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