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| Version 1 | Version 2 |
|---|---|
| Late Enron boss's verdict quashed | Late Enron boss's verdict quashed |
| (10 minutes later) | |
| A US court has ruled that the conviction of former Enron boss Kenneth Lay cannot stand as he died before he was able to appeal against the verdict. | A US court has ruled that the conviction of former Enron boss Kenneth Lay cannot stand as he died before he was able to appeal against the verdict. |
| He died in July, less than two months after his conviction for fraud and conspiracy related to Enron's collapse. | He died in July, less than two months after his conviction for fraud and conspiracy related to Enron's collapse. |
| A US district judge ruled that the case against him should be wiped out as a dead defendant could not be punished. | |
| The US energy giant went bankrupt in 2001 with debts of $31.8bn (£18bn), leaving 4,000 people out of work. | The US energy giant went bankrupt in 2001 with debts of $31.8bn (£18bn), leaving 4,000 people out of work. |
| The verdict is likely to hamper the government's efforts to recover $43.5m in cash and other financial assets which prosecutors claim that Mr Lay stole from Enron shareholders. | The verdict is likely to hamper the government's efforts to recover $43.5m in cash and other financial assets which prosecutors claim that Mr Lay stole from Enron shareholders. |
| The authorities can still pursue these claims in a civil court but will have to compete with other litigants, which include ex-investors and employees of the energy giant. | The authorities can still pursue these claims in a civil court but will have to compete with other litigants, which include ex-investors and employees of the energy giant. |
| Jeff Skilling, also convicted with Mr Lay, is due to be sentenced on Monday. | Jeff Skilling, also convicted with Mr Lay, is due to be sentenced on Monday. |
| Financial implications | Financial implications |
| Mr Lay's lawyers argued the conviction should be overturned following his death, citing a 2004 appeals court ruling that the state could not punish a dead defendant or their estate unless their case had been heard on appeal. | Mr Lay's lawyers argued the conviction should be overturned following his death, citing a 2004 appeals court ruling that the state could not punish a dead defendant or their estate unless their case had been heard on appeal. |
| Mr Lay was chairman of the Texas firm at the time of its spectacular collapse in 2001 after a huge black hole was uncovered in its finances. | Mr Lay was chairman of the Texas firm at the time of its spectacular collapse in 2001 after a huge black hole was uncovered in its finances. |
| He was found guilty of being aware of and doing nothing to prevent a massive fraud at the company, which knocked $60bn of its market value. | He was found guilty of being aware of and doing nothing to prevent a massive fraud at the company, which knocked $60bn of its market value. |
| Andrew Fastow, the firm's former finance director who gave evidence against Mr Lay and Mr Skilling in their fraud trial, was sentenced to six years in jail earlier this month. | Andrew Fastow, the firm's former finance director who gave evidence against Mr Lay and Mr Skilling in their fraud trial, was sentenced to six years in jail earlier this month. |