Judge dismisses conviction of late Enron founder Kenneth Lay

A U.S. federal judge Tuesday dismissed the conviction of Enron's late founder Kenneth Lay for he died before he had a chance to appeal.

Lay, 64, died of heart-related problems in July.

Lay and Enron's former CEO Jeffrey K. Skilling were convicted in May of spearheading the fraud that destroyed the company. Skilling will be sentenced on Oct. 23.

Tuesday's ruling thwarts the government's bid to seek 43.5 million U.S. dollars prosecutors allege Lay obtained fraudulently.

The government could still pursue those claims in civil court, but they would have to compete with any other litigants also pursuing Lay's estate.

The Labor Department has proposed a 12 million dollar agreement with the estate of Kenneth Lay, the deceased founder of Enron Corp., to settle claims involving mismanagement of workers' pension plans.

But the agreement does not settle the government's claims against Skilling, said the department in July.

Enron, once the nation's seventh-largest company, collapsed into bankruptcy proceeding in 2001 with an estimated 40 billion dollars in debt.

Source: Xinhua