1. Kenneth Lay

2. Biography
Kenneth Lee Lay, the son of a Baptist
preacher in rural Missouri was born on
April 15, 1942, in Tyrone, Missouri, and
received both his bachelor and master
degrees in from the
University of Missouri. He rose to the
pinnacle of corporate America as head
of .


3. Career History
Lay served in the U.S. Navy from 1968 to 1971.
In 1970, after earning a Ph.D. in economics at the University
of Houston, Lay went to work for the Exxon predecessor
Humble Oil & Refining.
He worked for the Federal Power Commission from 1971 to
1972, and served as energy deputy under secretary for the
United States Department of Interior until 1974.
In 1974, Kenneth Lay joined the Florida Gas Company, eventually
serving as president of its successor company, Continental
Resources Company.

4. Career History
In 1981, he left Continental to join Transco Energy
Company in Houston, Texas. Three years later, Lay
joined Houston Natural Gas Co. as chairman and
CEO.
The company merged with Inter North in 1985, and
was later renamed Corp. In 1986, Kenneth
Lay was appointed chairman and chief executive
officer of .
.

5. Kenny Boy has cashed his money

6. Interesting events for
Business Ethics Class
Kenneth Lay is known as the notorious business
executive who was convicted of conspiracy and fraud,
which cost 20,000 employees their jobs and many their life
savings, and losing billions for investors.
Kenneth Lay violated the following two laws of moral
theories.

7. Shocked the investors

8. Two of the moral or justice
theories
1. Utilitarian theory - Utilitarianism is a theory in normative ethics holding that
the proper course of action is the one that maximizes utility, usually defined as
maximizing total benefit and reducing suffering or the negatives.
Lay violated this principle by allowing Enron executives to
perpetuate fraud on investors , banks and employees with the
Mark-to-market accounting , that allows estimated profits for deals
to be recorded as such before they’re ever actually made. This
allowed Enron to lose billions on deals that their books showed as
being profitable and for which executives were given multi-
million dollar bonuses. Lay encouraged the employees to invest
their retirement savings into Enron stocks.

9. Two of the moral or justice
theories
1. Utilitarian theory
Enron company took 16 years to grow from assets of $10 billion
to $65 billion and it took 24 days for its bogus accounting to
unravel what is known as Enron saga - the $1.2 billion in
retirement funds and the $2 billion in pension funds that
disappeared in a matter of weeks; the 20,000 employees who lost
their jobs from Enron and the 29,000 others who lost their jobs
when Enron’s accounting firm, Arthur Anderson, collapsed due to
its role in the fraud; and the hundreds of millions of dollars that
top executives stashed away for themselves during all this chaos

10. Two of the moral or justice
theories
2. Deontology (The Ethics of Duty)-Immanuel Kant
Ken violated the ethics of duty by failing to stop the cooking of the
accounting books by the CFO of the company to benefit the company
executives to earn multi-million dollar payouts as they sold their stock
option when Enron stock price increased based on false claim of profit
by hiding the debts of the company in shell companies.
Even months before the collapse of the company he re-assured the
financial analyst that everything is well with the company and it is in the
best of financial health.

11. Two of the moral or justice
theories
2. Deontology (The Ethics of Duty)-Immanuel Kant

12. Fall of
 Enron filed for bankruptcy on 2nd Dec, 2001. The day that Enron filed for bankruptcy,
the employees were told to pack their belongings and were given 30 minutes to vacate
the building.] Nearly 62% of 15,000 employees' savings plans relied on Enron stock
that was purchased at $83 in early 2001 and was now practically worthless.

On July 7, 2004, Lay was indicted by a grand jury in Houston, Texas, for his role in
Enron's collapse. Lay was charged, in a 65-page indictment, with 11 counts of
securities fraud,wire fraud, and making false and misleading statements

The trial commenced on January 30, 2006, in Houston and on May 2006 Lay was
convicted of all six counts of conspiracy and fraud and faces a maximum of 45 years
in prison. Lay was also convicted on Thursday of bank fraud and making false
statements to banks in aseparate trial related to his personal banking.


13. Where is he now?
Lay died of a heart attack in Colorado in
July 2006. Accordingly, the judge vacated
Lay's conviction on, since he died before he
waOctober 17, 2006s sentenced and before
all appeals could be exhausted.

14. Humorous Video:
 Humorous Video
 Here Lays Ken Lay
 https://www.youtube.com/watch?v=NsJzo8jj-1U


15. Citation:
 Kenneth Lee Lay. (2014). The Biography.com website. Retrieved 06:23, May 07, 2014,
fromhttp://www.biography.com/people/kenneth-lay-234611.
 http://marshallmashup.usc.edu/wp-content/uploads/2013/01/Enron1.jpg
US v. Skilling and Lay
 http://news.findlaw.com/cnn/docs/enron/usvlay70704ind.pdf
 http://www.hermes-press.com/enronindex.htm
Obituary, “Kenneth L. Lay, 64, Enron Founder and Symbol of Corporate Excess, Dies
 “The NewYork Times Website” Retrieved 06:23, May 07, 2014,
.http://www.nytimes.com/2006/07/06/business/06lay.html
 http://dealbook.nytimes.com/2012/04/05/at-large-and-small-companies-internal-
controls-matter/?_php=true&_type=blogs&_r=0
"Judge vacates Ken Lay's Enron conviction
 ". Houston Chronicle. October 17, 2006. Retrieved 06:23, May 07, 2014,
 http://www.chron.com/business/enron/article/Judge-vacates-Ken-Lay-s-Enron-
conviction-1643982.php
http://1630revellodrive.files.wordpress.com/2012/04/enron-plug-burnout1.jpeg
 http://content.time.com/time/specials/packages/article/0,28804,2009445_2009447_200
9502,00.html