July 1, 2006

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Lay, Skilling Pursued by U.S. for $183 Million

HOUSTON -- Federal prosecutors want Enron Corp. founder Kenneth Lay and former Chief Executive Jeffrey Skilling to fork over nearly $183 million, in light of their convictions for perpetuating one of the biggest corporate frauds in U.S. history.

Prosecutors asked U.S. District Judge Sim Lake to order the newly convicted felons to turn over that amount in "proceeds of the fraud conspiracy," which includes bonuses, Mr. Skilling's gains from stock sales, and Mr. Lay's use of loans from Enron to pay down his personal debt, once at $100 million.

"The bonuses, the stock transactions of Skilling and the manipulation of the line of credit by Lay all generated proceeds that would not have existed but for the fraud scheme," the filing said. The government seeks $139.3 million from Mr. Skilling and $43.5 million from Mr. Lay.

Mr. Skilling's lawyers, with support from Mr. Lay's, asked Judge Lake in a filing in mid-June to schedule a nonjury trial regarding asset seizure issues. The judge has yet to respond.

The government had already intended to seize about $57 million in Mr. Skilling's cash and property that have been frozen since he was indicted in February 2004.