(The news featured below is a selection from the news covered in the Federal Securities Report Letter, which is distributed to subscribers of the Federal Securities Law Reports.)

SEC Seeks Subpoena Enforcement Against Former Enron CEO

In a subpoena enforcement action filed in the U.S. District Court for the District of Columbia, the SEC claimed that Kenneth L. Lay, the former head of Enron Corp., refused to produce documents lawfully subpoenaed by the Commission. Mr. Lay claimed that the production of certain documents would unconstitutionally require him to incriminate himself.

As alleged, the documents in Mr. Lay's possession are related to Enron and were generated during his tenure at Enron. The SEC further claimed that the documents are relevant to matters under investigation and within the scope of the Commission's investigative authority. According to the Commission, the documents being withheld by Lay appear to be corporate records, which may not be withhold from production based on any personal rights under the Fifth Amendment.

The Commission has requested that the court order Mr. Lay to show cause why he should not comply with the subpoena, and, if appropriate, to order Mr. Lay to produce the withheld documents for review by the court. The Commission also sought any further relief as may be necessary and appropriate to achieve compliance with the subpoena.