This Houston Chronicle story reports that the Enron Task Force plans to ask a grand jury to indict in the next two weeks Ken Lay on charges relating to the last few months he was CEO of Enron before the the company filed its December 2001 bankruptcy case.
The Houston-based grand jury has already heard five days of testimony this month, all focused on Lay. The witnesses have included Lay’s former chief of staff Steven Kean and ex-Enron General Counsel Jim Derrick.
The Chronicle reports that that prosecutors are focusing on the following events in regard to Mr. Lay:

∑Lay’s receipt of three memos or e-mails warning of financial trouble and fraud at the company within weeks of Jeff Skilling’s abrupt August 2001 departure as CEO.
∑His public statements to investors and analysts.
∑Lay’s attempt to find an alternative to having to substantially write down the “goodwill” or excess price paid for assets.
∑His trades of company stock for millions of dollars in company cash in those last months.

Lay is likely to be charged with some type of fraud, similar to the charges against pending against former Enron CEO Jeffrey Skilling and former Enron chief accountant Richard Causey. They are charged with insider trading, securities fraud, wire fraud, conspiracy and lying on Enron financial statements.