Former Enron founder Ken Lay has died of a massive heart attack. Lay had recently been convicted of committing one of the largest cases of corporate fraud in U.S. history and was facing the prospect of spending the rest of his life in prison.
On May 25, Lay and former Enron CEO Jeffrey Skilling were convicted of defrauding investors and employees by repeatedly lying about Enron's financial strength in the months before the company declared bankruptcy in December 2001.
Lay was also convicted of bank fraud in a separate, non-jury trial for making false statements to banks about his personal finances. Sentencing was scheduled for October 23. It was most likely Lay would spend the rest of his life behind bars unless his appeals were successful.
Lay had built Enron into the seventh largest public corporation in the United States. The Houston-based company was not financially sound, however as Lay and Skilling built the company based on fraudulent partnerships and other schemes and not on legitimate profits.
When Enron was viewed as successful, Lay was one of the most popular and influential men in Texas and the United States. President Bush used to call him 'Kenny Boy.'
The defense at his trial was hoping Lay could charm the jury but during the trial, he came across as combative and even grumpy. He appeared arrogant when defending his opulent lifestyle which continued even after Enron began to experience financial difficulties.
'He and his wife, Linda, were in Colorado for the week, and his death was totally unexpected,' said Steve Wende of First Methodist Houston. 'Apparently, his heart simply gave out,' he added in a memo to church staff.
Lay was born in Tryone, Missouri and grew up just outside Columbia. He rose from humble beginnings to the top of the corporate world only to see all of his success come tumbling down. He was 64.
