Kenneth Lay's conviction is vacated after the former Enron Chairman died from heart attack. As a result, it will be much harder for prosecutors to claim the $43.5 million they demanded during the trial. The government may still have a chance in the civil lawsuit that will follow, but if it fails, Ken's heart attack may well be remembered as a priceless heart attack.

P.S. Slate's columnist Daniel Engber explained the legal background of the Judge's decision.

U.S. District Judge Sim Lake Tuesday vacated the conviction of former Enron Corp. Chairman Kenneth Lay, who was convicted on May 25 on fraud and conspiracy charges and suffered a fatal heart attack on July 5.

Established law in the judicial Fifth Circuit, which includes Texas, and elsewhere holds that when a defendant dies before he or she has the chance to complete an appeal, the conviction essentially gets wiped away.

According to Judge Lake's opinion, the government had argued that Mr. Lay's estate shouldn't get to keep the proceeds of fraud that would otherwise be subject to forfeiture and distribution to victims of the crimes. Judge Lake rejected this argument, citing precedent stating that an individual who suffered a loss may pursue reimbursement in civil court. Although the government had asked Judge Lake to defer his ruling so it could seek retroactive legislation in Congress to let the conviction stand, he said "the court is bound to follow Fifth Circuit precedent."