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Lay's kin gained from deals
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February 2, 2002: 8:53 a.m. ET
Report: CEO's son, sister had business connections with Enron.
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NEW YORK (CNN/Money) - The son and sister of former Enron Corp. CEO Kenneth L. Lay gained from extensive business dealings with the now-bankrupt energy trader, according to a report published Saturday that cites public records and people close to Lay.
Both Mark Lay and Sharon Lay denied anything improper took place in the transactions, the New York Times said. The paper said legal experts agreed, but quoted critics who said the transactions demonstrated how top Enron officials engaged in pattern of conflict of interest over the years.
The Times said Mark Lay, the 33-year-old son of the CEO, joined his father in investing $1 million in privately held technology companies over the past three years. Months after the investments, Enron signed contracts with both of them and invested in one of the companies, the paper said.
The Times also said that, in 1997, Enron acquired a company co-owned by
Mark Lay that planned to trade paper and pulp products. The deal took place even though Kenneth Lay knew his son and an energy company he controlled were targets of a federal criminal investigation of suspected bankruptcy fraud and embezzlement, the paper added, citing Mark Lay as a source.
As part of the deal, the Times said Mark Lay was hired by Enron as an executive with a three-year contract that paid at least $1 million a year and options to purchase about 20,000 shares of the company's stock.
As for Sharon Lay, the paper said Enron gave more than $10 million in travel business to an agency, Alliance Worldwide, that she co-owned. The figure represents about half of the agency's business.
The Times said no criminal charges were brought against Mark Lay, who left Enron last year to enter a Baptist ministry. The paper said he did pay nearly $315,000 to settle a civil case without admitting any wrongdoing. 
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