Lay Painted as Enron Conspirator

Updated from 2:05 p.m. EDT

Kenneth Lay was accused by the government Thursday of playing an active role in the accounting fraud that led to the collapse of Enron, the company he founded and helped run for 15 years.

The allegations, contained in separate criminal and civil cases coinciding with Lay's arrest in Houston, contrast sharply with his image as an aloof corporate figurehead whose lax oversight allowed a cadre of top executives to run amok.

Lay surrendered to federal authorities and pleaded innocent to an 11-count indictment that alleged the now-familiar litany of fraud and conspiracy charges that have been leveled against most of Enron's former senior management. The 62-year-old Texan faces the possibility of decades-long incarceration if convicted. ...