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Death=innocence

Posted by Rachel Neumann at 1:55 PM on July 5, 2006.


When is a criminal conviction not a criminal conviction?

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Enron's Ken Lay, recently convicted of lying and defrauding investors and employees, died of a heart attack at his vacation home in Aspen, Colorado this morning. Peter G. over at TalkLeft, pointed out this key fact about Ken Lay's death:

[W]hen a defendant in a federal criminal case dies prior to sentencing, the entire prosecution process "abates" -- all the way back to the beginning. The indictment will be dismissed; Lay will be deemed to have died without a conviction and without a criminal record.
Lay was due to be sentenced in October. I'm all for forgiving in death and while I expect this may bring some comfort to his family, it's hard to forget it will also make it more difficult for the thousands of broke ex-Enron workers if they try to sue his estate to recover lost pensions or other lost wages. It's unclear whether the government will continue to pursue a 43 million dollar lawsuit against Lay and Skilling or whether civil cases will be allowed to go forward.

Digg!

Rachel Neumann is Rights & Liberties Editor at AlterNet.


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What ya' wanna' bet....
Posted by: jem on Jul 5, 2006 2:34 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
...he's actually sitting on a beach in the Cayman's?

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» RE: What ya' wanna' bet.... Posted by: kenadrian
» oh. my. god. Posted by: sln70
» SHOW ME THE BODY! Posted by: chasaturn
Apparent Heart Attack? MY ASS!!!!
Posted by: Againstthewindwalking on Jul 5, 2006 3:38 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
So Kenny boy had an "Apparent" heart attack! YEA RIGHT!!! Wanna bet that the Bush Cabal had something to do with this "heart attack"? A heart attack is the favorite acenario for many of the CIA's assasination drugs! Cancer is another one!

Look at what happened to Bob Marley. He put on a pair of boots that were supposedly a "gift" from an admiring fan. A piece of copper wire hidden in one pierced his big toe. He died of cancer in that same big toe a year later! Several CIA officials were in Jamaca on the day of the "gift", and Marley's compound had been attacked by "unknown assailants" less than a month before the incident!

Bush needed Lay dead! He knew too much about the secret energy meetings with Cheney! He was in on the deal! He could take this whole administration down in a day with information he had!

Bush's dad is the former head of the CIA and happened to be in Jamaca when poor old Bob Marley got stuck in the toe! These sorts of attacks are not difficult in a town like Aspen, where most of the people are tourists! Nobody would ever notice an operative slip in and out. All too convenient for Bush, I think!

Skillings will be next! Followed by Scooter Libby! Wait and see!

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All thing we owe to the dead is the truth.
Posted by: JoshuaLudd on Jul 5, 2006 4:53 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
And the truth is that Ken Lay was a greedy, corrupt, morally bankrupt felon.

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Changes to the Law Needed?
Posted by: kenadrian on Jul 5, 2006 5:39 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
If that's a legal position based upon some principle then it should not be honored in this case.

If that's a rule of law then it should be petitioned for change.

It might be too late for this convicted criminal but others will surely follow. Why does it take this kind of profile to reveal an absurdity in the legal system anyway?

The man is probably smirking in his casket.

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This isn't all that bad--there's a reason
Posted by: Jesse on Jul 6, 2006 5:43 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
The fact that Ken Lay's prosecution will "abate" does not, contrary to the article, make it more difficult for Enron employees to sue for their retirement assets. This is because Ken Lay was charged as a criminal matter and the issues for employees come up under ERISA (Employee Retirement Income Security Act).

That means that employees can still sue under rules that cover what are called prohibited transactions. This basically means that any assets that were supposed to be plan assets (that is, what you put in for your retirement) can't be company assets -- they have to be put into your 401k plan within a certain time. Anything else is a prohibited transaction and the company pays 100% excise tax on it. One could argue that by matching people's contributions in company stock (which few comapnies still do after Enron) the company engaged in a PT which would basically mean they have to pay it back and sufer the tax.

Or, one could attack it the way it has been so far, which is under the "prudent investment" rule, which says that the company (the place you work for, via the CFO or Benefits Manager or whoever runs the plan) must act in the best interests of participants. That means even though the employee chooses to invest in company stock, assuming it was offered as an investment option, the person heading up the plan has to at a minimum offer the same information other investors get. They also have to demonstrate that the investment (the stock) was prudent to offfer. Because of the conflicts of interest inherent in offering company stock, many employers put limits on how much of your 401k assets you can put in there.

In any case, the basis for employee lawsuits really has little to do with Ken Lay's shenanigans as outlined by the prosecutors. Ken Lay may be dead, but the Enron 401k plan is not and is sued under a completely different area of law. Whether he is"forgiven" simply does not matter.

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ken lay carries the day
Posted by: wleming on Jul 6, 2006 8:58 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
ken lay will never do time
he beggared his employees
and financed bush's crimes
but ken lay will never do time

ken lay lied and stole-and was slime
he cheated and bled those
he employed, but ken lay
will never do time

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» RE: ken lay carries the day Posted by: liberazi
SHOW ME, PLEASE!
Posted by: chanceny on Jul 6, 2006 12:30 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Where's the CSI team? The autopsy was done so quickly, a tad unusual to begin with. Where's the results? Who saw the body? I'm sure
kenny's friends knew speculation would be rife..They remember the 'Murder' committed by the Clintons when their totally depressed Arkansas pal who they optimistically cajoled into going to DC as part of their team (sorry, his name escapes me now) was found dead in a DC park. They know how salivatingly soapy this all becomes, only this time on Fox we'll be treated to only eulogies. If they lionize him enough, we could see a smaller version of Regan's farewell tour-de-force and shuttle his remains around before final implantation! If Kenny truly bought the farm, is bringin up the daisies, show me the money-shot! They got Elvis layin in his coffin. That was some score, eh? Get my drift? Brangelina's kid was outed too, no? Get me a paparazzi, quick! Otherwise, I'll be on the lookout whenever I travel to visit my various off-shore accounts that lie in my corporate-crook-friendly luxurious havens to play with all my ill-gotten gold, and I won't be able to enjoy myself in peace!

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Before we all become conspiracy nuts
Posted by: Jesse on Jul 6, 2006 1:41 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Ken Lay was in his 60s and it is hardly unusual for people that age to die of heart attacks.

It isn't like he was carrying any great secrets, and as I pointed out in another post his death has almost zero bearing on employees who wish compensation for their retirement plans. It isn't like all the court records disappear, for god's sake. Those are admissible as evidence in civil proceedings. In fact, his death makes it even easier because a whole lot of stuff that would ordinarily remain confidential (like conversations with his lawyer) may no longer be. I don't know what the current rules are in his state, but as far as I know lawyer-client confidentiality isn't as strongly protected once the client is dead.

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HE'S NOT DEAD
Posted by: Che-Ching on Jul 7, 2006 1:14 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Not Kenny boy.
Did anybody really believe that Kenny boy was ever really going to jail....really?
Kenny boy's got a new lease on life and now its our justice being buried with some unlucky stiff. Not all that dissimilar to how our freedom got buried in the rubble on Vesey street, along side so many of our heroes. How long can the parrots on the other side of the same party close their eyes to the insipid and thinly veiled conceit this regime shows towards everything we hold sacred (that's not stamped with dead presidents)? How long can we the people?

Show me the body. You had no problem showing us the bodies of Hussein's sons. You had no problem showing us the body of Zarqawi. He deserves no better & we deserve at least that.

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WE NEED COLUMBO
Posted by: VZEQICVA on Jul 10, 2006 10:50 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
So many questions. I suppose we'll have to wait around for yet another 'leak'. He was under an enormous amount of stress. Going to the slammer would make anyone nervous. Funny thing about rotten dishonest people - we don't even trust them to die right. Everything about them is suspicious. And for good reason. Thanks, ANNA

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