background. Moving on news and business wires.
WASHINGTON (AP) - The Securities and Exchange Commission asked a federal judge on Monday
to force Kenneth L. Lay, the former head of Enron Corp., to turn over documents the agency is
seeking in its investigation of the business practices that led to one of the largest corporate
bankruptcy filings in U.S. history.
The SEC said it had filed the request with the U.S. District Court in Washington, arguing that Lay
was wrong to contend that turning over the documents would violate his constitutional rights against
self-incrimination.
"The documents being withheld by Lay appear to be corporate records, which Lay may not withhold
from production based on any personal rights he may have under the Fifth Amendment," the SEC
said in a statement announcing its action.
Lay's spokeswoman and his attorney did not immediately return calls seeking comment.
Enron spiraled into bankruptcy in late 2001, part of a wave of corporate accounting scandals that
engulfed not only the Houston-based energy trading company but such other big corporate names
as WorldCom, Global Crossing and Adelphia Communications.
The highest-ranking Enron executive charged to date is former chief financial officer Andrew Fastow,
who faces nearly 100 criminal charges including fraud, money laundering, conspiracy and
obstruction of justice. Fastow has pleaded innocent and is free on $5 million bond as he awaits trial
next April.
Earlier this month, Ben Glisan Jr., Enron's former treasurer, pleaded guilty to conspiracy and was
sentenced to five years in prison.
Federal prosecutors said Glisan made no deal to implicate higher-ups such as Lay, but that his
sentence -- the maximum under the law -- could send what one federal lawyer called "a somewhat
chilling message."
Glisan worked for Fastow, who has been accused of masterminding the schemes that led Enron
into bankruptcy in 2001 amid devastating disclosures of inflated profits, hidden debt and
questionable accounting.
While the government has not filed criminal charges against Lay, the former chairman, or Jeffrey
Skilling, the company's former chief executive, the two were named in a civil lawsuit filed in June
against Enron and several former executives and directors.
The civil suit filed by the Labor Department seeks to recover hundreds of millions of dollars in
retirement money that Enron employees lost when the company went into bankruptcy.