At the time of its collapse in December 2001, Enron's bankruptcy was the largest in U. Still academically motivated, he obtained a Ph. The family was poor in a way that few Americans today can fully appreciate. Lay, in part because of his own strained finances, decided to carry on without Mr. He was there until 1984 and held the positions of Chairman, Chief Operating Officer, and Director. But when Kinder left and Skilling began his rise to the top, Lay's distance from daily operations, his dependence on the judgment of others and his tacit endorsement of a business culture in which bending the rules became a constant theme, ultimately would lead to the company's undoing — and in some measure to his own indictment in 2004.
Linda Lay opened a shop in a building she owned near upscale River Oaks in Houston; she called it Jus' Stuff and sold the furnishings and knickknacks with which she had filled her numerous homes. Born: 1942 in Tyrone, Mo. In June 1999 Enron's board of directors allowed Fastow to serve as manager for Enron's dummy companies even while he continued to serve as Enron's chief financial officer. From 1993 to 2001, Lay was also on the board of directors of Eli Lilly and Company, and a director of the Texas Commerce Bank. As such, while deals might take several years to actually earn money, their projected profits would be immediately counted against Enron's bottom line—showing profits where they had yet to be made. He relished being the go-to guy who could get things done. The eight women and four men on the jury reached the verdicts after a little more than five days of deliberations.
A hearing is set for June 9. Within Enron he broke down corporate divisions into small units dedicated to finding and making deals quickly, hoping this would inspire an entrepreneurial spirit in the company. Skilling, 52, were found guilty of lying — to investors, employees and government regulators — in an effort to disguise the crumbling fortunes of their energy empire. Skilling carries a maximum of 10 years. His attorney, Daniel Petrocell said between the sentence reduction and time off for good behavior, Skilling could be released by 2017. A memorial service was held a week after, attended by 1,100 guests, including former President.
An Enron employee remarked that the store was filled with just stuff bought with stolen money. Lay, saying the government had set out to punish the company's top officers regardless of what the facts might be. Lay helped engineer the company's merger with InterNorth of Omaha; the combined company would be named the Enron Corporation a year later. Government investigators discovered that Enron's dummy companies had traded natural gas and electricity among themselves, with each trade increasing the price, until the commodities were sold to California for several times their actual market value. Lay and Skilling decided that Enron's core business should be energy trading and that assets such as power plants and pipelines were of secondary importance. Skilling, who had few family members in attendance, reacted with little emotion as the verdict was read, briefly searching the audience's faces and later striding confidently alone out of the courtroom ahead of his lead lawyer, Daniel Petrocelli.
Walker persuaded him to stay on and earn a master's degree, finagling enough of a salary to make him a teaching assistant. Those transactions were used to artificially prop up the company's profits, but prosecutors never seriously attempted to prove that Mr. Government witnesses, including Enron's former treasurer, Ben F. Advertisement Enron's fall had a far greater impact than on just the energy industry by heightening nervousness among average investors about the transparency of American companies. Navy, 1968—1969, supply officer; George Washington University, 1969—1973, lecturer and assistant professor; Federal Power Commission, 1971—1972, commissioner's assistant; U. Education: Bachelor's and master's degrees in economics from the University of Missouri; a doctorate in economics from the University of Houston. On December 2, 2001, Enron declared bankruptcy.
Lay was a pleasant-looking man of average appearance and moderate height, a bland smile and a receding hairline. In 1991, he told the that the long hours he spent perched on the tail end of a tractor left him time to think about business and industry, a world that shone with promise compared to the dreary prospects that confronted him at home. But its sudden collapse at the end of 2001 and revelation as little more than a house of cards left Enron and its crooked E as the premier public symbol of corporate ignominy. In 1970, he graduated from the University of Houston with his Ph. An appeals court last year ordered the judge to revise the sentence. Lay moved back into the private sector in 1973, joining Florida Gas as a vice president for new energy ventures.
After earning his doctorate, Lay was an economist in the Navy, and in 1971 became undersecretary of Energy under Rogers Morton. Work history: Senior economist at Humble Oil and Refining Co. Walker persuaded his star student to join him as his technical assistant. He married Ayers in 1982, and he was still with her at the time of his death. Lay, the company's founder, was the public face of Enron. Skilling; as a condition of employment, Skilling insisted that any project he worked on use mark-to-marking accounting, meaning that whatever profit a deal was expected to make would be counted when the deal was first closed, not when the money actually came in.
The son of a Baptist preacher and some-time tractor salesman, he came from a family so poor that they were not always able to celebrate holidays, eating cold-cuts one Thanksgiving. Bush won the election, Mr. A basic economics class taught by Pinkney Walker caught his imagination, and he decided to major in the subject. The lawyers said the government was criminalizing normal business practices and accused prosecutors of pressuring key witnesses to plead guilty to crimes they did not commit. In August Skilling resigned from Enron, claiming personal reasons; accounts of his behavior suggest that he had a nervous breakdown and passionately wanted to spend more time with his family, having missed his children's growing up while giving his life to Enron. Lay's sudden death — family and friends say he did not have a history of heart disease — came six weeks after he was convicted of 10 charges of conspiracy, fraud and lying to banks and almost four months before he was to be sentenced for those crimes.
Lay also made connections in the city's deep political pool. Lay began to pursue a doctorate in night school at the University of Houston. Lay emerged as something of a legend in the industry, a man who had transformed near certain disaster into a new business. Lay's own appearances on the stand — that the men had perpetuated a far-reaching fraud by lying to investors and employees about Enron's performance. People who found themselves on the other side of Mr. All of the company's 21,000 employees worldwide lost their pensions, which were invested in Enron stock; in addition, most lost their life savings, which had also been tied up in shares in Enron.
However, unknown to the investor, major shareholders and officers had been quietly selling off millions of dollars of stock for as long as the prior six months. Bush, later golfing with President Bill Clinton, and eventually establishing a close relationship with George W. Lay on how much and how quickly the nation should deregulate electricity markets. Lay knew from his earliest days what it meant to work — delivering newspapers, baling hay, raising chickens — and what small amounts he made helped the family survive. Fastow's own admitted history of extensive crimes at Enron was brutally dissected by Mr. Natural gas had been subject to large increases and drops in prices, and producers were reluctant to sign long-term contracts for fear that they would miss out on the next big upward spike in prices.