Enron's Kenneth Lay Not Guilty

A U.S. judge on Tuesday threw out the conspiracy and fraud convictions of Enron Corp. founder Ken Lay because of his July 5 death.

U.S. District Judge Sim Lake said because Lay could no longer pursue appeal of a jury's guilty verdict last May, the law requires the convictions be voided.

The decision, in response to a request from lawyers for Lay's estate, overruled objections from U.S. prosecutors and a man who said he was victimized by Enron's 2001 collapse.

"Lay died before sentencing, before a final judgment could be entered, and before a notice of appeal could be filed," Lake wrote. "The court concludes that Lay's conviction must be vacated and that this action against him must be dismissed."

Prosecutors argued that Lay's estate would be unjustly enriched by voiding the convictions. They also said the judge should delay ruling until Congress could consider a proposal to change the law.

Russell P. Butler, who described himself as a victim of Lay's crimes, argued that the petition from Lay's estate to void the convictions violated his right to restitution.