According to SEC filings, investigators are focusing on the shares sold privately, in particular $26m sold after Enron accountant Sherron Watkins warned the company would collapse in a ‘wave of accounting scandals’.
The investigators have questioned lawyers and accountants who did work for Lay, in an attempt to build an insider trading case against him, according to reports in the media.
But it is not yet known whether there will be enough evidence to build a case against him.
Lay resigned as chief executive of Enron in August 2001, just months before the company collapsed.
News of the investigation into Lay comes a week after Enron’s head of global finance Michael Kopper pleaded guilty to enriching himself by setting up off-balance sheet partnerships.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements