Enron Founder Ken Lay Dies of Heart Attack

    Enron Corp. founder and former CEO Kenneth Lay, who was convicted for his role in one of the largest instances of business fraud in U.S. history, died of a heart attack on Wednesday in Colorado. He was 64.

    "Apparently, his heart simply gave out," said Pastor Steve Wende of Houston's First United Methodist Church. Lay, who lived in Houston, frequently vacationed in Colorado.

    Lay was awaiting an Oct. 23 sentencing for his convictions in the Enron collapse and was expected to face a lengthy prison term.

    Prosecutors in Lay's trial declined comment Wednesday, both on his unexpected death and what may become of the government's effort to seek a $43.5 million judgment from Lay that they say he pocketed as part of the conspiracy. Lay's death will not affect their case against Skilling.


This may create an interesting legal issue. In certain situations, where a defendant dies before his sentence, his attorneys can ask the court to vacate his conviction, on the theory that no one is "finally convicted" until sentence is imposed.