Here's a piece that discusses the net worth of Enron's Ken Lay and how he's gone from a multi-millionaire to having a net worth below $1 million. The details:
Once at the pinnacle of Houston's financial and political elite with a fortune worth as much as $400 million, Lay, the former chairman of the Enron Corp., is now facing financial ruin.
While he has talked about his shrinking wealth since Enron's collapse, he has managed to keep up appearances, continuing to live in a full-floor apartment in the city's affluent River Oaks section. But already, according to personal financial records obtained by The New York Times, Lay has fallen out of the ranks of the city's millionaires, with a stated net worth of less than $650,000.
And that financial assessment is probably on the optimistic side. His assets, for example, include $1.9 million held in a trust that is almost certain to be eaten up by legal fees.
In addition, Lay, 63, faces potential liability from lawsuits that were filed against him by shareholders and others after Enron's collapse that would almost certainly force him into personal bankruptcy. Lay may also be forced to forfeit his remaining home, along with some other assets, if he is convicted in the criminal fraud trial that is now taking place in Houston.
How the mighty have fallen, huh?
Other than the obvious (potentially criminal actions), it appears that Lay contributed to his own demise by not managing his money properly. Others at Enron fared much better:
Jeffrey K. Skilling, his co-defendant and one-time successor as chief executive, emerged from the Enron collapse in far stronger financial shape than his old boss, primarily because his stock was not encumbered by loans as Lay's was, and he cashed out a big chunk of his holdings before Enron's troubles were first exposed.
So what was Ken Lay borrowing money for? Wasn't his salary enough? Sheeesh!
This is just another example of the fact that your income isn't the key to growing your net worth, but spending less than you earn is. If you spend more than you earn, even if you're a billionaire, a famous singer, or anyone else, if you spend more than you earn, your net worth will be going down.
Here are a few more posts on this topic you might like to review:
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