Aspen – Awaiting sentencing in a case that defined corporate malfeasance, former Enron chairman Ken Lay reportedly has taken refuge in this resort community that prides itself on indifference toward the rich and famous and where his philanthropy has bought a lot of goodwill.
Lay, who is allowed to reside in Houston and Aspen under the terms of his $5 million bail, once owned four high-end homes in the Roaring Fork Valley but sold them – netting $12.3 million – after Enron’s collapse.
A spokesman for his church in Houston indicated that Lay had retreated to Aspen after last month’s guilty verdict on fraud and conspiracy charges, which could put him in prison for the rest of his life.
There have been no reports of sightings in town, though, and Lay, who has been listed in the Aspen phone directory, could not be reached for comment. Even those wary of his ignominy say Lay won’t likely be bothered in Aspen, where celebrities often are seen and ignored as they peruse boutiques or dine at the best tables.
“It might be one of the better places for somebody to sneak around while they’re waiting to be sentenced,” said Michael Cleverly, a Woody Creek writer and rabble-rouser.
After Lay was indicted, Cleverly jokingly established a collection jar at the Woody Creek Tavern for the supposed “Ken Lay Relief Fund.”
“There’s a tradition of the neighborhood coming to back up its citizens,” he said, purposely ignoring the fact that Lay and co-defendant Jeffrey Skilling reportedly spent $60 million on their legal defense. “For all of our nasty humor, we don’t get in their face personally. No one here was ever rude to him.”
And Lay has gained a measure of indebtedness through his contributions to nearly two dozen local charitable organizations over the past 15 years.
“Nobody is uncomplicated. Nobody has only halos or horns,” said a representative of one organization who asked not to be identified while commenting on the character of a donor.
While Lay’s contributions for the most part have run wider than deep, there were notable exceptions.
In 1999, Lay joined some 87 other benefactors who each donated at least $100,000 to the Aspen Music Festival and School.
Also, Lay – through his family foundation – contributed $440,000 over four years to the Aspen Center for Environmental Studies, although he failed to fulfill the fifth year of his $550,000 pledge, forcing the organization to scramble for additional funding to renovate an old horse barn near Basalt into an activities center, said executive director Tom Cardemone.
“To this day, we continue to be pleased with such a significant contribution,” despite the shortfall, he said.
But he acknowledged that the board of directors did hold a series of discussions about the propriety of accepting money from an accused fraudster.
“Essentially, the conclusion was that this isn’t a gift from an individual. It’s a gift from a family foundation, and just because there’s a spotlight on an individual associated with it doesn’t make it wrong,” Cardemone said.
Although Lay was considered a “consistent and loyal donor” to many organizations in the valley, he kept a low profile, said Judy Clauson, director of advancement for the Anderson Ranch Arts Center in Snowmass Village, another organization favored by Lay.
“We didn’t even really understand who he was until his name started appearing in the press,” Clauson said.
And even with his legal troubles, the donations to local organizations didn’t completely dry up. Just last year, Lay made a “considerable” donation to Carbondale’s Colorado Rocky Mountain School in the memory of one of its founding board members, said Terry Lee, the director of development. Last August, he became a $250 member of Aspen Public Radio, said executive director Brent Gardner-Smith, a former local newspaper reporter who once covered his travails.
“The question is, ‘How do you feel about taking Ken Lay’s money?’ I’m not sure I’d like to begin necessarily looking too deep. Many nonprofit organizations don’t like to look at the purity of people’s funds,” he said. “We’re happy to have his support, and we’re glad he’s listening.”
Staff writer Steve Lipsher can be reached at 970-513-9495 or slipsher@denverpost.com.
