HOUSTON (AP) - The neighbors of the widow of Enron Corp. founder Kenneth Lay
have sued her, accusing her of not paying her share of fees associated with
living in one of Houston's most exclusive high-rises.
Linda Lay is already fighting an attempt by the federal government to seize
nearly $13 million from Kenneth Lay's estate, including the family condominium
at The Huntingdon.
The lawsuit by The Huntingdon Council of Co-Owners seeks more than $100,000
in unpaid fees from Linda Lay or foreclosure of her condo, which tax records
value at about $4.75 million.
In court documents, Linda Lay's attorney, David Jones, denied all the
allegations in the high-rise's lawsuit and asked that she be awarded her costs
for fighting the claims.
Kenneth Lay was convicted in May 2006 of 10 counts of fraud, conspiracy and
lying to banks in two separate cases, but his convictions were vacated because
of his July 2006 death from heart disease.
Following his death, federal prosecutors filed a civil action against Linda
Lay to seize assets they claim were "proceeds of the fraud proven in the
criminal case against Lay."
Linda Lay has said her husband didn't commit any crimes and thus her assets
are not subject to forfeiture.
Enron corp., once the nation's seventh-largest company, entered bankruptcy
proceedings in December 2001. Its collapse wiped out thousands of jobs, more
than $60 billion in market value and more than $2 billion in pension plans.
Lay and former chief executive Jeffrey Skilling were convicted for their
roles in the company's collapse. Skilling is serving a sentence of more than 24
years.
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