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Ken Lay widow rejects US claim to Enron founder's estate

[JURIST] Linda Lay, widow of former Enron chairman Ken Lay [defense website; Houston Chronicle profile], formally rejected a US government claim to his assets in court papers filed Friday. In an answer to the government's civil suit [JURIST report] against the Enron founder's estate, Linda Lay maintained her husband did not commit any crimes and that none of the $12.7 million the government is seeking arose from any criminal activity. The Houston Chronicle has more.

The Justice Department originally brought the civil suit in October 2006. Earlier that month, a federal judge vacated [JURIST report; text, PDF] Lay's criminal convictions on fraud and conspiracy charges [indictment, PDF] because Lay died suddenly [JURIST report] of a heart attack in July while his appeal was pending. The judge's decision meant the government could not seize Lay's assets unless it filed a civil suit. The assets being sought by the government include a $2.5 million condo and $10.2 million controlled by an investment firm.

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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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