Home > Kenneth Lay alive? Maybe Kenneth Lay alive? Maybe...Why else would a judge (...)

Kenneth Lay alive? Maybe Kenneth Lay alive? Maybe...Why else would a judge clear his record?

by Open-Publishing - Tuesday 24 October 2006
3 comments

Justice Trade-Exchange Rates USA

Kenneth Lay alive? Maybe
Why else would a judge clear his record, columnist asks.
G. Jeffrey Aaron
October 22, 2006

I sometimes hear that Elvis Presley isn’t really dead, a notion supported by the alleged sightings of "The King" at various shopping malls around the United States.

I’ve heard the same thing about Tupac Shakur, the rap star who died in a hail of gunfire in Las Vegas 10 years ago. No one claims to have seen Tupac at a shopping mall. But the amount of music and the two feature movies released after his reported death make me think he’s not really dead either.

With those two examples in mind, I advance the following theory: Kenneth Lay — the disgraced CEO of Enron who was convicted of 10 counts of fraud, conspiracy and lying to banks in two separate cases related to the collapse of the Houston-based company he founded, who died of heart disease July 5 while vacationing in Aspen, Colo. — isn’t really dead, either.

How do I know? Why else would a federal judge decide last week to vacate Lay’s conviction on fraud and conspiracy charges connected to the downfall of the once mighty energy trading company? Why would a judge make it more difficult for the government to seize $43.5 million from Lay’s estate, money he stole from his company, and ensure the ill-gotten goods stay put. The answer is easy. So somebody, probably Lay, can use the money at a later date. The ruling was based on case law established in 2004 that allows convictions to be revoked if defendants die without an opportunity to appeal. The convenience makes it impossible for me to think otherwise.

It’s a scheme that Hollywood dreams about. A wealthy but crooked industrialist pays big bucks to fake his death, which allows his conviction to be overturned on the basis of an obscure court case. All that remains is finding an indiscrete way to access the money.

Enron was once the seventh-largest company in the United States. However, the company imploded in December 2001 when accounting parlor tricks could no longer hide billions in debt or make failing ventures appear profitable.

When the company fell, thousands of jobs were lost, along with $60 billion in market value and more than $2 billion in pension plans. People’s lives were ruined. Enron became synonymous with corporate fraud and scandal, a catalyst for similar corporate investigations and reams of new legislation and policies designed to prevent similar occurrences in other companies.

But Lay had socked away millions of dollars in protected investments. In early 2000, according to published reports, he and his wife bought about $4 million worth of variable annuities that guaranteed an annual income of about $900,000, starting next year. In Texas, the proceeds from annuity contracts are untouchable by creditors’ and bankruptcy demands unless fraudulent intent can be proved. Lay’s conviction did just that, but the judge’s decision made it all go away and locked the money up even tighter.

With the money now safe and the annuities ready to kick in, my theory suggests that Lay has had plastic surgery to alter his appearance. Money can buy anything, including a new identity. And come February, his annuity payments will allow a continuation of the lifestyle to which he’s became accustomed.

He wouldn’t be the first to come up with the plastic surgery idea. In 1997, Amado Carrillo-Fuentes, wanted by American and Mexican drug agents, died on the operating table while undergoing plastic surgery and liposuction to change his appearance. Four suspects in the 1989 assassination of Colombian presidential candidate Luis Carlos Galan reportedly escaped detection by having plastic surgery.

I admit my spin on the events is a stretch. But is it any less believable than the ruling itself, which in effect clears Lay’s name but does nothing for the victims of his fraud?

G. Jeffrey Aaron is the business writer for the Star-Gazette. His column about business happenings and issues appears weekly on the Sunday business page. To suggest a column topic or story idea, call him at 607/271-8288 or e-mail him at jaaron@stargazette.com.

http://www.stargazettenews.com/apps/pbcs.dll/article?AID=/20061022/COLUMNIST01/610220309

Forum posts

  • It is just another of those coincidences that happen to the rich and powerful that are connected to Bush kleptocracy. The devil is in the details as they say. My questions would be - did the judge make this ruling on his own? or why did he feel compelled to make this ruling? Was it brought about by Ken’s lawyer’s? Ken’s wife? petitioning the judge? Have his bank accounts grown suspiciously lately or have threats been made on his family? The judge who presided over the McVeigh case (after the first judge who was a retired general was removed) had a daughter who was killed in a freak accident on the side of a volcano in Hawaii. It is all just too f*****’ convenient.
    Has anybody looked into whether the Enron assets that did have some value (there must have been many) were sold off in sweetheart deals before the declaration of bankruptcy?
    Gepay

  • Lay’s conviction was expunged according to a common principle of law called "abatement ab initio." The principle holds that when a defendant dies before appellate review of a conviction, the death abates, ab initio, the entire criminal proceeding. In an often cited Fifth Circuit Court decision, "United States v. Estate of Parsons," the court explained that “the appeal does not just disappear, and the case is not merely dismissed. Instead, everything associated with the case is extinguished, leaving the defendant as if he had never been indicted or convicted.” The Fifth Circuit Court explained the rationale for the rule: “The finality principle reasons that the state should not label one as guilty until he has exhausted his opportunity to appeal. The punishment principle asserts that the state should not punish a dead person or his estate.” For all intents and purposes, in the eyes of the law, in death "Kenny Boy" is an innocent man. He has no criminal record.

  • Does anyone have an idea of how much he took with him when he died? Does anyone know where he is now? I understand that when you die, you will be dead for a very long time. Life is a great gift for each one of us. Ken’s life (gift) has ended or will end soon if you want to believe the conspiracy theories. After all, he is, was 60 some years of age. Laws and guilt are all of man. On this earth, we will eventually loose track of all guilt and innocence. That too will pass away like a cloud on a summer day and in a short 100 years no one living today will even have known Ken Lay. And, eventually, our records will turn to dust and Ken lay will be expunged for ever and ever and ever. The only thing that is really important is what you do. So, I simply say, “Ken Lay, while you were on this earth, you hurt people”.
    Now, as for Skilling, his partner in crime, lets put him away for the rest of his days on earth, unless of course, he too dies first.