Kenneth Lay facts for kids
Quick facts for kids
Kenneth Lay
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Mugshot of Lay upon his arrest in 2004
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Kenneth Lee Lay
April 15, 1942 Tyrone, Missouri, U.S.
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| Died | July 5, 2006 (aged 64) Snowmass, Colorado, U.S.
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| Occupation | Businessman |
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| Children | 5 |
Kenneth Lee Lay (born April 15, 1942 – died July 5, 2006) was an American businessman. He started a large energy company called Enron and was its main leader. In 2001, Enron faced a huge problem with its money records. This led to a very big bankruptcy, which was the largest of its kind at that time.
Lay was later found responsible for some of the issues that caused Enron's downfall. He passed away in July 2006 while on vacation, before his sentencing. His death was caused by a heart attack. After his death, the legal findings against him were canceled.
Many people remember Lay for the problems at Enron. His actions led to important changes in how companies are run. These changes focused on honest leadership and being responsible.
Contents
Early Life and Education
Kenneth Lay was born in Tyrone, Missouri. His father was a Baptist preacher. Lay grew up in a family that did not have much money. This was after their family store failed.
Later, his family moved to Columbia, Missouri. Lay went to David H. Hickman High School. He then studied economics at the University of Missouri. He earned a bachelor's degree in 1964 and a master's degree in 1965.
He continued his studies at the University of Houston. There, he earned a PhD in economics in 1970. Before finishing his PhD, Lay worked as an economist for Humble Oil. He also served in the United States Navy as a financial analyst.
Business Career
After his time in the Navy, Lay worked for the government. He was a federal energy regulator from 1971 to 1972. He also served as an energy deputy for the Department of Interior.
In 1974, Lay returned to the business world. He became an executive at Florida Gas Transmission. He later led Continental Resources. In 1982, he joined Transco Energy Company.
By the 1980s, rules for energy companies changed. This allowed for more competition. Lay used this new situation to his advantage. In 1985, a company called InterNorth bought Houston Natural Gas, which Lay led. They then changed the company's name to Enron.
Lay also served on the boards of other companies. These included Eli Lilly and Company and Texas Commerce Bank.
Political Connections
Lay was friends with the Bush family, including former President George H. W. Bush. He gave money to the Republican Party. He also helped lead several committees for the party.
He was a co-chairman for George H. W. Bush's 1992 re-election campaign. Lay even flew Bush and his wife to Washington on an Enron plane. In 2000, some thought Lay might become a government secretary. However, he was not chosen.
Lay also had good relationships with other politicians. These included Republicans like Dick Cheney and Democrats like Bill Clinton. From 1989 to 2002, Lay gave a lot of money to political campaigns. Most of this money went to Republicans.
Enron's Downfall
In 2001, Lay's company, Enron, went bankrupt. At that time, it was the biggest bankruptcy in U.S. history. About 20,000 employees lost their jobs. Many also lost their life savings. Investors lost billions of dollars.
On July 7, 2004, Lay was charged for his part in the company's failure. He faced charges related to fraud and making false statements. His trial began in Houston in January 2006.
Lay said that Enron's collapse was due to others. He blamed short sellers, other executives, and the news media. On May 25, 2006, a jury found Lay responsible for several counts of conspiracy and fraud. A judge also found him responsible for other fraud counts.
Death and Legal Outcome
Kenneth Lay died on July 5, 2006. He was on vacation in Colorado. Officers were called to his house in Snowmass, Colorado. He was taken to the hospital but was pronounced dead.
An autopsy showed he died from a heart attack. This was caused by a heart condition. It also showed he had suffered a heart attack before.
A private funeral was held in Aspen. His ashes were buried in the mountains. A public memorial service was held in Houston. Over 1,000 people attended, including George H. W. Bush.
On October 17, 2006, Lay's conviction was overturned. This happened because of a legal rule. This rule states that if a defendant dies during an appeal, the judgment is canceled.
Personal Life
At the time of his death, Lay was married to his second wife, Linda. They had been married since 1982. Both Linda and his first wife, Judith, supported Lay during his trial.
Kenneth Lay had two children and three stepchildren. He also had twelve grandchildren.
See also
In Spanish: Kenneth Lay para niños
- Timeline of the Enron scandal
- Jeffrey Skilling
- Richard Kinder
- David L. Sokol
- Northern Natural Gas Building
- Texas Commerce Bank Headquarters
- Texas Commerce Tower
- Enron Complex
- Lou Pai
