Gov't. Drops Ken Lay Appeal

The Government has dropped its bid to reinstate the conviction of Ken Lay. The Government was hoping to use the criminal case as a means of going after his assets.

Lay died of a heart attack in July after being convicted in May of 10 fraud and conspiracy charges. U.S. District Judge Sim Lake threw out the verdicts under a legal principle that erases convictions of defendants who die before they can appeal.

The government moved yesterday to withdraw a Nov. 16 notice of an appeal of Lake's decision. Steven Tyrrell, chief of the Justice Department's fraud section, said in the document the government made the move after a bill to change the law was introduced in Congress. He didn't elaborate.

I think this just means the Government has decided to place all its apples in the civil forfeiture cart.

U.S. authorities last month filed a civil forfeiture case against Lay's estate, seeking $12.5 million for victims of Enron's collapse.

Smart move by the government. Judge Sim Lake was correct and this appeal was a loser.

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