Chief President Of Corporate Development Essay

854 Words Nov 14th, 2016 4 Pages
In the summer of 2001, Vice President of Corporate Development, Sherron Watkins, alerts the executives to some accounting irregularities. She directed the higher-ups to the fact that the books and records for Enron were inflated. Company officials ignore Sherron’s warning. In the trials, Watkins duly noted that she “… fully expected Mr. Lay to conduct a thorough into my concerns.” Sherron became one of the important witnesses for the government but not the only one.
In August of 2001, the company reached its 100 billion dollars in revenue. At the same time the CEO, Jeff Skilling, unexpectedly resigned and cashed in nearly 60 million dollars’ worth in Enron shares. The resign resulted in Wall Street questioning if Enron was actually steadily improving and becoming more successful.
Common knowledge is that Skilling used Andy Fastow, the CFO, to create the Special Purpose Entities in order to offload the bad debts and bad assets to make the appearance that Enron was sounder than they actually were. Simultaneously, as Skilling steps out and the company continues to offload their debt, Kenneth Lay takes the front seat as Enron’s stock begins to plummet. Over the course of its plummet, it goes as low as 28 cents a share. At this pivotal time, the company reports a 3Q loss of 318 million. This combination of the perfect storm triggers the investigation from the SEC.
In November 2001, they admitted to cooking its books to by 2.1 billion. And in December 2001, Enron files for…

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