Wife of Enron’s Founder Is Under Investigation
The wife of Enron Corp. founder Kenneth L. Lay is under federal investigation for possible insider trading because she arranged for the Lay family foundation to sell half a million shares of Enron stock days before the energy company went bankrupt nearly three years ago, Lay’s lawyer said Wednesday.
“It appears to me to be an act of extortion,” said Michael Ramsey, Lay’s lead lawyer, noting that the government has had records of all personal and foundation-related stock sales by the Lays for at least two years. The government’s renewed interest in the Nov. 28, 2001, sale arranged by Linda Lay comes as her husband faces 11 counts of fraud, conspiracy and lying to banks in two separate pending criminal cases. He contends he committed no crimes.
“This is purely an attempt at intimidation,” Ramsey said. “And it’s not going to work.... Eventually we’re going to get them into court.”
Andrew Weissmann, head of the Justice Department’s Enron Task Force, declined to comment.
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