HOUSTON — A judge says the federal government can proceed with its attempt to seize nearly $13 million from the estate of Enron Corp. founder Kenneth L. Lay.
U.S. District Judge Ewing Werlein rejected a request from Lay's widow to halt the government's bid for the money, which prosecutors claim were "proceeds of the fraud proven in the criminal case against Lay."
Kenneth Lay had been convicted in May 2006 of 10 counts of fraud, conspiracy and lying to banks in two separate cases. A judge ruled last fall that Lay's death in July 2006 vacated his convictions because Lay couldn't challenge them.
But Werlein wrote in his ruling that prosecutors had "ample allegations" of criminal activity tied to the cash and property to pursue their civil forfeiture case.