It amazes me that there is any doubt in anyone’s mind about Ken Lay’s guilt in this case.

On the other hand though, if his convictions were vacated upon his death, does the government really have the right to seize the “proceeds of the fraud” that he was technically not convicted of committing?

A judge says the federal government can proceed with its attempt to seize nearly $13 million from the estate of former Enron Corp. founder Kenneth Lay.

U.S. District Judge Ewing Werlein rejected a request from Lay’s widow to halt the government’s bid for the money, which prosecutors claim were “proceeds of the fraud proven in the criminal case against Lay.”

Kenneth Lay had been convicted in May 2006 of 10 counts of fraud, conspiracy and lying to banks in two separate cases. A judge ruled last fall that Lay’s death of heart disease in July 2006 vacated his convictions because Lay couldn’t challenge them.

But Werlein wrote in his ruling Wednesday that prosecutors had “ample allegations” of criminal activity tied to the cash and property to pursue their civil forfeiture case.

Linda Lay, wife of the former Enron head, will continue to fight the attempts to seize the assets, which include the family condominium valued at $6 million, said Samuel Buffone, her attorney.

The government will have to prove his guilt again at a civil forfeiture trial, but the burden of proof is lower than in a criminal case.

Interesting, that’s for sure. There is no doubt Ken Lay did the things he was convicted of, but this seems like a huge technical loophole to me. If his convictions were vacated by the court upon his death, then any monetary fines and “proceeds” should automatically be vacated too, shouldn’t they?

No, I am not taking Ken Lay’s side, but rather pointing out the fact that the government is trying to seize funds from his estate when there has technically not been a conviction. What happens when they seize your home and your assets because of the “proceeds” of your activities, whether or not you were ever brought to trial and/or convicted?

Sure, they are pursuing it through a civil forfeiture trial, but the whole thing reeks if you ask me. His convictions never should have been vacated.

Comments are closed.