Enron was firstly a natural gas pipeline company that combine as the combination of Nebraska and Omaha’s natural gas company, Houston Natural gas and InterNorth. It took 15 years from 1985 to 2000 to climb up into the one of the largest gas company in North America. Behind the successful of the company, it was a story of betrayal and greed of the executives of the largest natural gas company in North America. For example, the plant was moved to Mexico in order to avoid the minimum wages. Also, they tricked people by state current earnings based on the future contracts which created the illusion of profit that was unrealistic. Consequently, more 4000 workers were laid off due to the crumbling finances of the company, more than just that, the
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Said by Mr. Johnson, who lost his $70000 a year job, “They told me I had 30 minutes”, “Wrap your life up, and get out.” Enron cruelly treated their employees for the executive’s profit, in other words, they sacrificed those who contributed to their successful for the profits on the executives only. Next, Bernie Madoff with one of the biggest scamming in the history of U.S economy. He used Ponzi scheme, which is form of investing fraud with the illusion of high returns, this is how it works, with the money from the new investors is used to pay the returns for the old ones, the person behind the scheme makes the illusion of profits while there is actually no profit is being made. That was how Madoff gathered $65 billion from the investors. The Ponzi schemes in Madoff’s case fell apart when the investors requested $7 billion back in returns but he did not have enough money to pay back the returns. Both caused evil to others, in those two cases, were Enron’s employees and Madoff’s investors, they both lost their money and suffering with getting it …show more content…
For each company, describe the ways in which the bad acts committed by Bernard Madoff’s company and Enron/Andersen (and the relevant executives and employees) harmed the community (i.e., society generally). With each company, was criminal prosecution sufficient to heal the wrongs done to the community (including the individual victims)? Why or why
Said by Mr. Johnson, who lost his $70000 a year job, “They told me I had 30 minutes”, “Wrap your life up, and get out.” Enron cruelly treated their employees for the executive’s profit, in other words, they sacrificed those who contributed to their successful for the profits on the executives only. Next, Bernie Madoff with one of the biggest scamming in the history of U.S economy. He used Ponzi scheme, which is form of investing fraud with the illusion of high returns, this is how it works, with the money from the new investors is used to pay the returns for the old ones, the person behind the scheme makes the illusion of profits while there is actually no profit is being made. That was how Madoff gathered $65 billion from the investors. The Ponzi schemes in Madoff’s case fell apart when the investors requested $7 billion back in returns but he did not have enough money to pay back the returns. Both caused evil to others, in those two cases, were Enron’s employees and Madoff’s investors, they both lost their money and suffering with getting it …show more content…
For each company, describe the ways in which the bad acts committed by Bernard Madoff’s company and Enron/Andersen (and the relevant executives and employees) harmed the community (i.e., society generally). With each company, was criminal prosecution sufficient to heal the wrongs done to the community (including the individual victims)? Why or why