Enron Scandal Analysis

Great Essays
ABSTRACT
Fall of Enron Corporation, popularly known as Enron Scandal which ended with filing bankruptcy on 2nd December 2001. It was one of the largest bankruptcy that America seen at that time and their story became common research for investigators and researchers. Enron was seemed to doing well in the beginning of 2001 but they forced to disclose their accounting practice in October 2001 and which is appeared as very creative and generally unaccepted high-risk accounting practices. This paper examines three person namely Jeffrey a Shankman, Kenneth lay and Louise Kitchen – their involvement in the scandal or relation with Enron Corporation. Their email data files are analyzed using Email forensic analysis tool MailXaminer to find various
…show more content…
From 1990’s to 2001 Enron was famous in the business world. At the end of 2001 the Enron Corporation collapsed. One of America's largest corporations and America’s most innovative company became America’s biggest corporate bankruptcy. Not only the entire business world but also the lives of their employees affected by this fall. Enron made to believe that the company is in a good position and has good revenue. But the reality was entirely different. Their profits were only in papers, not in practical case. It is done by the intelligently designed accounting by the company executives. Enron was awarded as America’s most innovative company by fortune’s survey for continuous six …show more content…
It might be possible that he had done something unethical in this process. The search were performed using the keyword “Art” using regular expression.

CONNECTIONS

Fig 3: Connections of kenneth.lay@enron.com

Connected Persons georgen@epenergy.com jab@wincrest.com jdoerr@kpcb.com tschlener@fginc.com skaczenski@velaw.com buckley@puc.state.pa.us jeffrey.garten@yale.edu chill@lrmlaw.com kitty.colgin@compaq.com robert@kovair.com watson_wyatt_houston@watsonwyatt.com sharon.lay@travelpark.com

Fig 4: Connections of louise@enron.com

Connected Persons
leary@timeinc.com

Related Documents

  • Improved Essays

    The Most Infamous Cases of the FBI The Federal Bureau of investigation was formed in 1908 by Attorney General Charles Bonaparte during president Roosevelt’s presidency. The duties and responsibilities of the FBI were originally ill-defined. The FBI started out with fewer than 60 agents. When the FBI was first established, there were few federal crimes (Schlesinger 19 and 20). Now, the FBI has many very important cases, including cases involving terrorism, Espionage, public corruption, civil rights, organized crime, and white collar crimes.…

    • 878 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Ethics, broadly defined, is the a set of values or principles established by society for its betterment. Many of these values and principles are incorporated into culture and law. Organizations today integrate ethics into the foundation of their businesses in order to augment the professional value and trustworthiness of the their enterprise. Both public and private companies are expected to uphold certain ideals and internal controls for the benefit of their stakeholders. Operating with high virtues dictates an enterprise’s true value.…

    • 1234 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    In the beginning of the 80’s, business between gas producers and pipelines were made through “take-or-pay” contracts, in which pipelines “agreed either to purchase a predetermined quantity at a given price or be liable to pay the equivalent amount in case of failure to honor that contract”; this price was basically fixed during the life of the contract but can be adjusted with inflation. Since the pipelines where tied to contracts, they used the same model with their clients and issued similar contracts that assured a long-term stability for their business. Enron was founded in 1985 by Kenneth Lay through a merge between two natural gas pipeline companies: Houston Natural Gas and Omaha-based Internorth. The result of the merge put Enron as…

    • 198 Words
    • 1 Pages
    Improved Essays
  • Decent Essays

    The management of Enron Company raised the company’s price share over a short period through misappropriation of accounts, which misrepresented the company’s profits to investment relations campaigns. Through such malpractices, the management managed to sell 1.75 million shares of worth more than $1 billion at a price ranging from $80-$40 down. There was contradiction, lack of transparency in Enron has published financial statements, and its financial status as it was at that moment. The misappropriation of funds and accounts was a deliberate and intentional strategy of Enron’s Corporation top management, which was a direct show of fraudulent activities and dishonesty undertaken in the company…

    • 104 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Prior to its demise, Enron, an American energy, commodities, and services company, was one of Wall Street’s highest rated conglomerate. Enron was regarded as one of the most powerful and successful corporations in the world. Unfortunately, as America would learn, their success did not come without a consequence. Enron participated in side partnerships with investment banks, and was involved in special purpose entities also known as off-the-books partnerships, in order to hide company losses. Enron also claimed twelve million dollars in revenue by pretending to sell its Nigerian barges to Merrill Lynch.…

    • 1374 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    What Is The Cause Of Enron

    • 1068 Words
    • 5 Pages

    THE RISE AND FAll OF ENRON KARANJYOT SINGH LOVEPREET SINGH 000352171 000352551 WHAT WAS ENRON-Enron, a company headquartered in Houston, worked one of the biggest regular gas transmission organizes in North America, totaling in excess of 36,000 miles, also being the biggest merchant of common gas and power in the United States. Besides from gas and power Enron dealt with a lot of other products. Enron dealt with more than 30 products and among them the products which they traded online were petrochemicals, plastics, pulp and paper, steel and power.…

    • 1068 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Sarbanes Oxley Act Essay

    • 818 Words
    • 4 Pages

    The Sarbanes Oxley Act of 2002 which was also called SOX was published by the Congress in 2002 to protect investors’ interest (SOX, 2002). After the enactment of SOX, corporate financial reporting was more strict and normative. However, there were a lot of accounting scandals before 2002. And the Enron scandal attracted the most public attention of all the scandals. Enron was created in 1985 and was one of the largest energy companies around the world.…

    • 818 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Brian Cruver's Report

    • 287 Words
    • 2 Pages

    Brian Cruver was a firsthand witness to the disturbing, surreal, and hilarious moments of Enron's long dance with death. When he first entered Enron's office complex, "the Death Star," he was the epitome of the Enron employee: young, brash, sporting a shiny new MBA, and obscenely overpaid. From his first day, however, when he was told that some colleagues hadn't really wanted to see him hired, he found himself in the middle of a venal greed machine whose story unfolded with all the absurdity and frustration of a tale by Kafka crossed with Tulipomania and Liar's Poker. While Cruver's book examines the accounting tricks, the insider stock trades—and in a special section, how the grossly lucrative fraudulent partnerships were structured and funded—it…

    • 287 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Numerous laws were broken in the Enron scandal. The mail and wire fraud statutes of U.S. law criminalize the use of wires the enable a scheme to defraud or to obtain money by fraudulent means (Seitzinger, Morris, & Jickling, 2002). The honest-service statue, the law Skilling alleged broke that was then overturned, defines the fraud as a scheme to deprive another of the intangible right to honest service. Enron was subject to quite a few other laws that were broken. The company was supposed to disclose all information concerning federal securities to any public investor so that the public can make investment decisions.…

    • 358 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Enron Review Failure

    • 408 Words
    • 2 Pages

    The Enron outrage, uncovered in October 2001, in the long run prompted the insolvency of the Enron Corporation, an American vitality organization situated in Houston, Texas, and the accepted disintegration of Arthur Andersen, which was one of the five biggest review and bookkeeping associations on the planet. Notwithstanding being the biggest insolvency redesign in American history around then, Enron was refered to as the greatest review failure.[1] Enron was framed in 1985 by Kenneth Lay subsequent to combining Houston Natural Gas and InterNorth. Quite a long while later, when Jeffrey Skilling was employed, he built up a staff of administrators that, by the utilization of bookkeeping escape clauses, extraordinary reason elements, and poor money related reporting, could shroud billions of dollars paying off debtors from fizzled arrangements and ventures. CFO Andrew Fastow and different administrators not just deluded Enron's governing body and review board on high-hazard bookkeeping rehearses, additionally constrained Andersen to overlook the issues.…

    • 408 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    How did the corporate culture at Enron contribute to its decline and bankruptcy? The culture at Enron was about obtaining monetary gain and this was supported and encouraged by executives. They promoted a culture of arrogance and made employees believe that they could take high risk with no consequences imposed. It was described in the documentary as the “survival of the fittest”.…

    • 961 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    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.…

    • 1017 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The documentary “Enron: The Smartest Guys in the Room” deals with “one of the most America's largest corporate bankruptcy”, as it reports the documentary itself. In fact, few years before the bankrupt, Enron was the 7th largest corporation in the USA that took 16 years to go from 10 billion assets to approximately 65 billion, but in only 24 days it went bankrupt. The movie describes and analyses how the company grew and then collapsed quickly and surrounded by a gigantic scandal that can be seen as pride but also as arrogance, intolerance and greed. From one side it can be considered as pride because the people involved didn’t want to admit that they were going down.…

    • 1022 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Enron Scandal Summary

    • 808 Words
    • 4 Pages

    Ian D Johnson Jb Henriksen Accounting 2600 11/1/17 Case Presentation: Enron Scandal Before the scandal that Enron is widely known for today, they were an up and coming American energy company led by CEO Kenneth Lay. In 1985, Lay helped to merge two natural gas companies known as Houston Natural gas and InterNorth to form Enron. Soon after, Congress approved legislation that deregulated the sale of natural gas, allowing companies to use the free market to sell energy. The company became a national middle man for the electricity for the newly deregulated states. This allowed Enron to sell energy at higher prices, increasing its revenue.…

    • 808 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Enron Case Introduction After watching the video “Enron: The Smartest Guys in the Room”, (Youtube), several issues came into light. It is known that Enron has been the seventh largest company to declare the bankruptcy in the year 2001. The reasons of their bankruptcy were becoming clear as many investors lost millions of dollars, due to which the lawmakers sought to enact some legislation so that these activities could be prevented. Obviously the smartest people from Enron had entered various questionable transaction with the customers and different entities.…

    • 1057 Words
    • 5 Pages
    Improved Essays