The Enron scandal was an accounting scandal involving Enron Corporation, an American energy company based in Houston, Texas. ... Enron shareholders filed a $40 billion lawsuit after the company's stock price, which achieved a high of US$90.75 per share in mid-2000, plummeted to less than $1 by the end of November 2001.
The Enron scandal drew attention to accounting and corporate fraud as its shareholders lost $74 billion in the four years leading up to its bankruptcy, and its employees lost billions in pension benefits.
Enron scandal, series of events that resulted in the bankruptcy of the U.S. energy, commodities, and services company Enron Corporation and the dissolution of Arthur Andersen LLP, which had been one of the largest auditing and accounting companies in the world.
The deregulation of energy traders led to overconfidence in investments that Enron made because they thought they were in control. ... The accounting shortcuts they used to satisfy Enron were illegal and once discovered, caused the Enron collapse.
Enron faced an ethical accounting scandal in 2001 after using “mark-to-market” accounting to fake their profits and misused special purpose entities, or SPEs. Enron worked to make their losses look like less than they actually were, and “cooked the books” to make their income look much higher than it was.
(Reuters) - Jeffrey Skilling, the onetime chief of Enron Corp who was sentenced to 24 years in prison for his conviction on charges stemming from the company's spectacular collapse, has been released from federal custody, the Houston Chronicle reported on Thursday.
When Enron got started, natural gas and electricity were produced, transmitted and sold by state-regulated monopolies. They were often plodding and inefficient. Enron used Wall Street magic to transform energy supplies into financial instruments that could be traded online like stocks and bonds.
Enron should have been fair and honest to its partners and shareholders. Proper disclosures, accountability and transparency were not provided. ... Enron scandal could have been avoided if employees and management had a stronger ethical culture and if arrogance and greed weren't dominant among management.
Enron Creditors Recovery Corp still exists, as an inactive company. Its last corporate filing was in Oregon, its home state, on 12th July 2016. ... Enron started life as a regional natural gas pipeline company, the result of a merger between Houston Natural Gas and InterNorth in 1985.
In all, 21 people were convicted in the Enron scandal, and accounting firm Arthur Andersen was forced out of business after it was found guilty of obstruction of justice.
Sherron Watkins (born August 28, 1959) is an American former Vice President of Corporate Development at the Enron Corporation.
On June 15, 2002, Andersen was convicted of obstruction of justice for shredding documents related to its audit of Enron, resulting in the Enron scandal. Although the Supreme Court reversed the firm's conviction, the impact of the scandal combined with the findings of criminal complicity ultimately destroyed the firm.
After nearly nine decades, Andersen ends role as auditor of public companies. CHICAGO, Aug, 31, 2002 — -- After 89 years in business, Arthur Andersen LLP on Saturday ended its role as auditor of public companies. Of its more than 1,200 public-company audit clients, none will remain. ...
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