U.S. says Lay schemed to defraud investors

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SEC sues to recover $90 million in unlawful gains
In a separate action, the Securities and Exchange Commission charged Lay with insider trading, saying he personally profited from the "fraud that was Enron."

The government seeks to recover all of Lay's gains, amounting to more than $90 million.

Lay denied the charges. "I did not engage in criminal acts," he told reporters.

The indictment charged that Lay and other senior Enron officials -- including former CEO Jeffrey Skilling and former chief accounting officer Richard Causey -- "engaged in a wide-ranging scheme to deceive the investing public."

"Kenneth Lay is charged with abusing his powerful position as chairman of the board and CEO and repeatedly lying in an effort to cover up the financial collapse that caused devastating harm to millions of Americans," said U.S. Assistant Attorney General Christopher Wray during a Thursday press briefing at the Justice Department.

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