Case Analysis : Enron Corporation Essay

1017 Words Dec 4th, 2014 5 Pages
Sherron Watkins, former vice president of Enron Corporation, plays a pronounced part in the history of whistleblowers who blew the whistle on corporate companies. Sherron Watkins blew the whistle on Enron in 2001 by sending a memo to Kenneth Lay, the founder of Enron, giving caution she knew the company was at a great risk of finding themselves in a dilemma. The dilemma would be the product of many financial accounting scandals.
Enron is a company that buys and sales energy from different companies and according to Patrick Rogers, was worth $74 billion in 2001, and was developed by Kenneth Lay and Jeffrey Skilling in 1985. Enron would be a successful company for years, until Sherron Watkins blew the whistle on them. According to Pamela Colloff, Watkins discovered the fraud in 2001 while merely doing her assigned job. Watkins was doing a simple inventory using Microsoft Excel to distinguish profitable assets from non-profitable assets. According to Colloff, Watkins made a vital finding while doing her inventory. Sherron Watkins discovered an entity called the Raptors. The Raptors are described by Colloff as off-the-books partnerships Enron had been hiding. Watkins found hundreds of millions of dollars in losses Enron had been hiding.

In Samantha Miller’s article To Tell the Truth she says Kenneth Lay and other Enron executives already had knowledge of the future of Enron’s collapse. Watkins discovered millions of dollars in debts and losses which Enron had been covering…

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