facebook
twitter
rss
account
search
search
 

U.S. Supreme Court rejects Enron challenge

April 16, 2007 at 2:24 PM   |   Comments

WASHINGTON, April 16 (UPI) -- The U.S. Supreme Court Monday let stand a lower court ruling that threw out Enron Corp. founder Kenneth Lay's conviction after he died.

Lay's July death made it harder for people who lost money in the Enron collapse to seek repayment because the law required his May 25 conviction on 10 counts of conspiracy, securities fraud and related charges to be vacated when he died.

The 2001 Enron collapse in an accounting scandal that also brought down its audit firm, Arthur Andersen LLP, wiped out thousands of jobs, more than $60 billion in market value and more than $2 billion in pension plans.

Former Enron shareholder Russell Butler had sought to have Lay's conviction reinstated and sought financial restitution for his $8,000 Enron investment under the 2004 Crime Victims' Rights Act, The Wall Street Journal reported.

Lay's estate said in a court filing the Crime Victims' Rights Act did not change the law on how a criminal conviction should be handled when someone dies before appeals are exhausted.

A federal trial judge agreed with Lay's estate and the 5th U.S. Circuit Court of Appeals in New Orleans upheld the lower court's decision.

© 2007 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Scrap South Stream, Europe says Scrap South Stream, Europe says
2
New F-35 sustainment system undergoing flight testing New F-35 sustainment system undergoing flight testing
3
Boeing to build new passenger spacecraft for NASA Boeing to build new passenger spacecraft for NASA
4
Eni makes major oil find in Ecuador Eni makes major oil find in Ecuador
5
Apple to authorities: No iPhone user data, even with a warrant Apple to authorities: No iPhone user data, even with a warrant
Trending News
Video
x
Feedback