In a court filing, federal prosecutors will attempt to hold former Enron chief executive Jeffrey Skilling liable for all criminal "proceeds attributable to all co-conspirators, indicted or unindicted" -- including those of the late Kenneth Lay.
The government made its request last week, asking Judge Sim Lake to enter a $182.8 million judgment against Skilling, who was convicted in May on 18 counts of fraud and conspiracy and one count of insider trading.
In June, prosecutors issued their initial request for a money judgment -- asking for $139.3 million from Skilling and $43.5 million from Lay. Less than a week later, Lay died of heart problems. Prosecutors say while Lay's death may cause the guilty verdicts against him to be vacated; the criminal proceeds he helped to generate still exist. Lay had testified that he had personally been wiped out financially when Enron fell into bankruptcy.
Prosecutors say that Skilling has $55 million in assets, most of it tied up in municipal bonds that are frozen under a government seizure order. But Skilling has said that at least $30 million of that money is owed to his lawyers at O'Melveny & Myers. He initially paid the firm $23 million before the trial began in January.
Judge Lake would have to agree to issue a money judgment before the government could pursue Skilling for Lay's portion of the criminal proceeds.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access