• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Mendel Law Firm, L.P.

Attorneys & Counselors

Call Now: (281) 759-3213

  • FB
  • TW
  • IN
  • RSS
LP Payment button
  • Home
  • Our Firm
    • About Our Firm
    • About The American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Mission Statement
    • Multimedia
    • Published Books
    • The Academy Fellow Designation
  • Services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
      • Are You A Caregiver
      • Coping With Alzheimer’s
      • Guardianship & Conservatorship
      • Hospice Care
      • Emergency Medicaid & Nursing Home Planning
      • Medicaid Planning
      • Veteran’s Benefits
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Seminars
  • Testimonials
    • Client Testimonials
    • Representative Clients
    • Review Us
  • Resources
    • Areas We Serve
      • Baytown
      • Conroe
      • Galveston
      • Houston
      • Pasadena
      • Woodlands
      • West University Place
    • Elder Law Reports
    • Elder Law Resources
      • Galveston Elder Law
      • Houston Elder Law
      • Sugar Land Elder Law
      • West University Place Elder Law
      • Woodlands Elder Law
    • Estate Planning Resources
      • Estate Planning Checkup
      • Estate and Gift Tax Figures
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top Estate Planning Techniques
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Avoidance Tax Planning FAQs
      • Avoiding Probate FAQs
      • Business Succession Planning FAQs
      • Charitable Gifting FAQs
      • Elder Law FAQs
      • Estate Planning FAQs
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA and Retirement Planning FAQs
      • Legacy Wealth Planning FAQs
      • LGBTQ Estate Planning Frequently Asked Questions
      • Living Trusts FAQs
      • Medicaid FAQs
      • Nursing Home Planning FAQs
      • Pet Planning FAQs
      • Power of Attorney FAQs
      • Probate FAQs
      • Trust Administration FAQs
      • Trust Administration & Probate FAQs
      • Trusts FAQs
      • Veterans Benefits FAQs
    • LGBTQ Resources
    • Probate Resources
      • Houston Probate
      • Sugarland Probate
      • Woodlands Probate
      • West University Place Probate
    • Probate & Trust Administration Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
    • Special Needs Resources
  • Contact Us
  • BLOG
Home » BLOG » Famous Estates-Champ or Chump? Ken Lay

Famous Estates-Champ or Chump? Ken Lay

May 24, 2019 by Stephen A. Mendel, Estate Planning Attorney

 

Kenneth Lay mugshot and Enron logo

There were many dark ironies shrouding the Enron scandal of the early 2000s and its founder and CEO, Ken Lay. The energy company, based out of Houston Texas, claimed nearly $101 billion in earnings. However, in reality, Enron was participating in one of the largest cases of corporate fraud in American history. Almost overnight, the company went from one of the most well respected and prosperous businesses in the nation to a bankrupt stain on corporate history. Thousands of unsuspecting employees and investors were left devastated by the fallout. Yet, the elites of Enron all claimed ignorance when questioned.

One of the “innocent” felons was Ken Lay. Lay was insistent that the true culprits of the company’s collapse were short sellers, rogue executives, and the news media. He also claimed that he had been unaware that any of these scoundrels were participating in the fraud. This naiveté would be rather odd considering that cracks had been showing in Enron’s empire for years. The irony in it all? Enron’s slogan was, “Ask Why.” If Lay really was as oblivious to the company’s corruption as he claimed, it would have done this CEO well to heed his own catch phrase.

Early Life of Ken Lay

Ken Lay has been labeled one of the worst CEOs of all time by the likes of Business Insider and Portfolio. However, there was a time when he was considered one of America’s greatest success stories. Born to a Baptist preacher in rural Missouri, Lay was a true rags to riches story. The man had a drive not seen amongst many. He pursued higher education and eventually earned his Doctor of Philosophy in economics from the University of Houston in 1970. He also joined the navy and advanced to the rank of lieutenant, serving at The Pentagon.

In 1974, he left his work in the military to use his degree in business. Lay had one success after another and had a bigger and better title at each company he worked with. Finally, in 1985, Lay reached, what some might call, the peak of the American Dream. He bought the Houston energy company he was currently the chairman and CEO of and renamed it, Enron.

A True Success Story?

To the world, Lay was a self-made success story. He owned a $100 billion organization that was named “America’s Most Innovative Company” 6 years in a row by Fortune, was a personal friend to President George H.W. Bush, and the Houston community loved him for his generous acts of philanthropy in the community. Yet, the looming glass walls of Enron did not reflect its level of transparency. Under Lay’s supervision, the company culture became slowly more and more poisoned by nasty characters with less than ethical intentions. This was true from Enron’s trade floor to the top dogs’ offices.

Ken Lay’s Legacy

Kenneth Lay is a name associated with one of the biggest scandals in Houston’s history. 20,000 employees lost their jobs and, in some cases, their life’s savings to Enron’s downfall. For a very bright individual, Lay seemed incapable of grasping the depth and breadth of Enron’s crimes and his part in it all. Even after being convicted for all charges pressed against him, Lay declared, “I firmly believe I’m innocent in the charges against me.” This seems a bit hard to believe. Yet, Lay’s personal estate is the biggest piece of evidence that he might have had partial ignorance of Enron’s state.

Many of the key players in this scandal had strategically planned for Enron’s bankruptcy. They came out with their personal finances relatively intact. Yet, Lay’s fortune was all but eradicated in the wake of his criminal charges. Kenneth Lay actually died before his sentencing. Thus, he never felt the full impact of his loss of affluence. The one’s who did, were his family. To this day, Ken Lay’s wife is still (quite literally) paying for his sins.

While the more obvious moral of the story here is, “don’t break the law,” this is also a valuable lesson in getting your affairs in order. Estate Planning is a crucial step towards the safe transfer of your finances. As such, it should be handled by knowledgeable attorneys in the field. You do not want to take the risk of putting the ones you love in a nasty drawn out and expensive case of probate if you can avoid it. If you would like to learn more about taking proper measures to protect your own wealth and legacy, contact the Mendel Law Firm, L.P., for a free initial consultation on estate planning, trust planning, and/or probate issues.

 

Sources:

https://abcnews.go.com/Business/LegalCenter/story?id=2003728&page=1
https://en.wikipedia.org/wiki/Kenneth_Lay
http://content.time.com/time/specials/packages/article/0,28804,1903155_1903156_1903186,00.html
https://www.forbes.com/sites/peterjreilly/2011/09/08/estate-of-enron-ceo-kenneth-lay-wins-in-tax-court/#348a0bf598d3
https://www.chron.com/business/enron/article/Lay-s-will-leaves-all-of-his-assets-to-his-wife-1481076.php
  • Author
  • Recent Posts
Stephen A. Mendel, Estate Planning Attorney
Stephen A. Mendel, Estate Planning Attorney
Mr. Stephen Mendel is an attorney who focuses a substantial part of his practice on estate planning. Mr. Mendel’s guiding principle is to provide his clients with quality legal services tailored to each client’s specific needs and goals.
Stephen A. Mendel, Estate Planning Attorney
Latest posts by Stephen A. Mendel, Estate Planning Attorney (see all)
  • Famous Estates-Champ or Chump? Nelson Mandela - September 27, 2019
  • Famous Estates-Champ or Chump? Jane Fonda - September 13, 2019
  • Texas Trivia – Name the first of six flags to fly over Texas. - September 6, 2019

Filed Under: General

Other Articles You May Find Useful

  • Famous Estates-Champ or Chump? Nelson Mandela
  • Famous Estates-Champ or Chump? Jane Fonda
  • Texas Trivia – Name the first of six flags to fly over Texas.
  • Famous Estates-Champ or Chump? Paul Walker
  • Texas Trivia – Who played the hero in the movie “Lone Star”?
  • Famous Estates-Champ or Chump? Sam Simon
  • About Stephen A. Mendel, Estate Planning Attorney

    Mr. Stephen Mendel is an attorney who focuses a substantial part of his practice on estate planning. Mr. Mendel’s guiding principle is to provide his clients with quality legal services tailored to each client’s specific needs and goals.

    Primary Sidebar

    The Mendel Law Firm

    Follow Us

    • FB
    • TW
    • IN
    • RSS

    Blog Subscription

    Plan For Your Future and Protect Your Legacy

    • This field is for validation purposes and should be left unchanged.

    HOUSTON

    The Mendel Law Firm, L.P.
    1155 Dairy Ashford, Suite 104
    Houston 77079
    United States (US)
    Phone: (281) 759-3213
    Fax: 281-759-3214

    Map

    map

    Office Hours

    Monday8:00 AM - 5:00 PM
    Tuesday8:00 AM - 5:00 PM
    Wednesday8:00 AM - 5:00 PM
    Thursday8:00 AM - 5:00 PM
    Friday8:00 AM - 5:00 PM

    Footer

    The Mendel Law Firm

    The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an
    attorney-client relationship.

    © 2021 Mendel Law Firm, All Rights Reserved. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys