Lay's lawyers take first step to erase conviction

Ex-Enron chief Ken Lay's lawyers took the first step toward getting his conviction vacated yesterday, filing a request with U.S. District Sim Lake that would substitute Lay's estate for Lay, who died July 5. The request would allow the estate to act on Lay's behalf, which would in turn allow the estate to move to dismiss Lay's indictment on charges of fraud and conspiracy in connection with Enron's collapse.

Mike Ramsey, Lay's attorney, said the move was "just to establish an entity in court to do business." The request — which has been expected since Lay died of a heart attack while vacationing in Aspen — was unopposed by prosecutors.

Vacating Lay's conviction wouldn't have any effect on Lay, of course, now that he's in the big boardroom in the sky (or the big boardroom downstairs, depending on how you look at it). But it could be a very good thing for his wife, Linda, because it would mean federal prosecutors would no longer be able to go after millions of dollars they say Lay got by participating in Enron fraud. Prosecutors are seeking $43.5 million from Lay; though he said during the trial that he was pretty much broke, a $6.3 million investment became available to him shortly before his death and he still held his $5 million condo at the Huntingdon. Considering that Lay left all his assets to Linda, we bet she's pushing for a dismissal.

Lay's former Enron cohort, ex-CEO Jeff Skilling, is fighting the government's push to seize $139.3 million of his assets, claiming he should only have to turn over $12.5 million.