$183 million? thats nothing.

[sttombiz]

U.S. wants $183 million from Lay, Skilling

Prosecutors say the former Enron executives earned incentives based on illegal activity

By JOHN C. ROPER

Copyright 2006 Houston Chronicle

Prosecutors want Jeff Skilling and Ken Lay to pay the government $183 million it says were ill-gotten gains derived from fraud they committed while at Enron.

And in listing the assets they hope to seize, prosecutors pointed to a $6.3 million investment owned by Lay.

Lay never mentioned the fund during his jury trial while testifying about his assets, nor was it raised by prosecutors.

During that trial, in which he was convicted on six counts related to Enron, the former chairman told jurors his net worth was once $400 million but that he was $250,000 in the hole.

According to a motion filed Friday by prosecutors, Lay has a private equity fund with Goldman Sachs he bought in 1999 that has reached its required seven-year maturation period and is available to him this month.

Lay's attorney, Michael Ramsey, said Lay didn't mention the fund "probably because it had nothing to do with the case." He added that it was purchased years before the charges in his indictment.

Ramsey declined to comment on the motion, saying he needed time to review it.

Skilling's attorney Dan Petrocelli said the motion was unfair and would leave his client's family without financial support.

Assets have been frozen

The government is asking the judge to allow it to seize $140 million in stock sales, a bonus and other compensation from former Enron CEO Skilling and $43 million from Lay's use of a company credit line and a bonus.

"As a direct result of this criminal behavior they received incentive-based compensation and were able to sell Enron stock and reap hundreds of millions of dollars in benefits, all while knowingly misrepresenting Enron's true financial condition to the public," the motion, filed in a Houston federal court said.

Prior to the trial, prosecutors stated they intended to seize from Skilling $50 million in stocks and bonds and any properties, including his $5 million home in River Oaks. From Lay, prosecutors had said they planned to take his $5 million high-rise condominium.

All of those assets have been frozen.

One reason the government is seeking such large amounts from Skilling and Lay in the so-called "money judgment" motion filed Friday is to capture any other assets of the former executives prosecutors may stumble upon in the future, said Houston defense attorney Joel Androphy.

"With a money judgment they could do it," Androphy said. "Without a money judgment, they have no mechanism to seize the property."

Prosecutors also said in the motion they plan to "request authority" to search for any unknown assets of the men.

Androphy said courts are split on approving money judgments

[Montrose1100]

...ok I'm undecided on whether to buy Skilling's 9000 sq ft mansion in River Oaks or Lay's 12000 sq ft apartment in the Huntingdon. can someone help me?

Would definitley go with the Huntingdon