Linda Lay, the widow of Enron Corp. founder Ken Lay, was left with everything in accordance with his will, raising questions about the claims of prosecutors, creditors and other claimants against his estate.
Lay died July 5 in Aspen from heart disease, six weeks after being convicted of fraud and conspiracy charges that could have meant life in prison.
“I think the prosecutors are going to file a civil forfeiture case,” said Christopher Bebel, a Houston-based attorney and former federal prosecutor. “It’s where the Department of Justice seeks to gain control of the fruits of the illegal activity, and the prosecutors’ allegations will trump any interest that may be asserted by Mrs. Lay or the shareholders.”
He said former Enron shareholders’ and creditors’ claims will take priority over the majority of Linda Lay’s claims.
The document, filed Thursday in Harris County Probate Court in Texas, does not specify assets but names Linda Lay as executor. The will was signed Aug. 8, 2003, a year before his indictment.
Lay’s net worth was estimated at $400 million before Enron failed and went bankrupt in 2001.
However, during his criminal trial this year, Lay said his net worth was negative. The government sought $43.5 million from Lay.
Aurora resident Joseph Daniluk previously filed a lawsuit against Lay after losing $35,000 he had invested in Enron.
He has little hope of winning his claim against the Lay estate.
“I mean, I’m sure he has some expensive personal items, but I don’t think it’d be any kind of money of consequence,” said Daniluk, chief executive of Denver-based Superloads, which moves heavy equipment.
“I’ll bet it doesn’t exceed a million dollars. I would believe everything of consequence would be squirreled out away a long time ago.”
Staff writer Ameera Butt can be reached at 303-820-1233 or abutt@denverpost.com.
