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...according to a statement Missouri released on Monday, the university?s general counsel concluded, after talking to the state attorney general, that there were "legal questions" concerning the propriety of returning the funds. The Missouri constitution doesn't allow public funds to be given to private concerns - either to Lay or his charities. "Our position is: it's university property now. Are we merely a savings account to be withdrawn at some point?" he asks. "If Mr. Lay's money is returned to pay his legal bills, what do we tell the next donor who wants a cash refund because...

Author: /time Magazine | Title: Why Ken Lay Wants a Refund | 5/24/2006 | See Source »

...guilty verdicts may be in against former Enron CEO and chairman Ken Lay, but he is still doing battle with, of all things, his alma mater. Seven years after making a $1.1 million gift to endow a chair in economics at the University of Missouri, Lay is now trying to have the money returned. Last September, in the wake of Hurricane Katrina, he personally sought to have the money - as yet unused - transferred back to Houston to assist 14 charities in relief efforts, including preacher-author Joel Osteen's megachurch. Five months later in February this year, the trustee...

Author: /time Magazine | Title: Why Ken Lay Wants a Refund | 5/24/2006 | See Source »

...Lay threatened legal action against his alma mater last fall after he got no action on his request that the $1.1 million be given to such Houston area charities as the American Red Cross, the Catholic archdiocese charities, and five churches, including the one run by Osteen, best-selling author of "Your Best Life Now." Lay's deadline for a reply came and went with no lawsuit, but in February, the trustee for his finances arrived seeking the money for lawyer's fees...

Author: /time Magazine | Title: Why Ken Lay Wants a Refund | 5/24/2006 | See Source »

...economics department - and hence the chair. Scrushy, the former head of HealthSouth Corp., poured over $700,000 into Birmingham, Ala., churches and ministries during his felony trial in 2004, a coincidence noted with more than a little skepticism by his prosecutors. (Scrushy was acquitted). Battistoni raises similar questions about Lay?s attempt to divert the money to charities in the fall before his trial started, but he doesn't believe the money is "tainted" since it was donated before the shenanigans at Enron began...

Author: /time Magazine | Title: Why Ken Lay Wants a Refund | 5/24/2006 | See Source »

...gift to the University of Missouri in 1999. It should not be used to enhance Mr. Lay's image in Houston when juries are about to be selected," Battistoni told TIME after learning of the attempt to reclaim the money. Lay's spokeswoman Kelly Kimberly rejected the Scrushy parallel, noting that the Lays were long-time philanthropists, who gave nearly $25 million to non-profits between...

Author: /time Magazine | Title: Why Ken Lay Wants a Refund | 5/24/2006 | See Source »

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