Wednesday, October 25, 2006

Legal News - RSS keyword

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The Justice Department has filed a civil lawsuit Monday, against the estate of former Enron chairman Ken Lay seeking $12.7 million "to recover property that constitutes proceeds of the fraud proven in the criminal case.Because of the Federal Judge's decision last week to vacate Lay's convictions of fraud and conspiracy charges, the government could not seize Lay's assets unless it filed a civil suit. The judge's decision to vacate the charges was based on the fact that the former Enron Executive died of a heart attack in July. Lay's lawyer cited "abatement" because Lay died while his appeal was still pending.

The government is trying to recover assets which incudes a $2.5 million condo and $10.2 million controlled by an investment firm. Lay's criminal trial attorney,Michael Ramsey told the Houston Chronicle that the government's lawsuit "is an attack, apparently, on his widow and children" and that only victims of the Enron scandal should be able to sue.