Enron founder Kenneth Lay dies

HOUSTON — Enron Corp. founder Kenneth Lay, who was convicted of helping perpetuate one of the most sprawling business frauds in U.S. history, died Wednesday in Aspen, Colo. He was 64.

Lay died of a heart attack, his pastor in Houston said.

"Apparently, his heart simply gave out," said Pastor Steve Wende of Houston's First United Methodist Church. Lay, who lived in Houston, frequently vacationed in Colorado.

Lay was convicted May 25 along with former Enron CEO Jeffrey Skilling of defrauding investors and employees by repeatedly lying about Enron's financial strength in the months before the company plummeted into bankruptcy protection in December 2001. Lay was also convicted in a separate non-jury trial of bank fraud and making false statements to banks, charges related to his personal finances.

Skilling, reached by telephone at his home in Houston, told The Associated Press that he was aware of Lay's death.

"No, I don't have any comment," he said quietly.

Prosecutors in Lay's trial also declined comment Wednesday, both on his unexpected death and what may become of the government's effort to seek a $43.5 million judgment from Lay that they say he pocketed as part of the conspiracy. Lay's death will not affect their case against Skilling.

Both were scheduled to be sentenced Oct. 23. Lay faced decades in prison, as does Skilling.

The Pitkin, Colo., Sheriff's Department said officers were called to Lay's house in Old Snowmass, Colo., shortly after 1 a.m. MDT (3 a.m. EDT). He was taken to Aspen Valley Hospital, where he was pronounced dead at 3:11 a.m. MDT.

Pat Worcester, executive assistant to the CEO at Aspen Valley Hospital, said the hospital would release a statement later.

Family spokeswoman Kelly L. Kimberly issued a statement saying, "Ken Lay passed away early this morning in Aspen. The Lays have a very large family with whom they need to communicate. And out of respect for the family, we will release further details at a later time."

Burt Palmer, the church's executive pastor, told The Associated Press that the Lays attended church in Houston on Sunday. "The church continues to love them and help them walk through this difficult time."