Enron: The Powerful Consequences Of Corporate Crime

980 Words 4 Pages
Corporate crime inflicts far more damage on society than all street crime combined. Whether if it’s contributed by injuries, death, or financial lost, corporate crime and violence wins by landslide. The FBI reported that burglary and robbery from street crimes cost the nation an estimate of 3.8 billion a year. In comparison to corporate fraud, it’s a drop in a bucket. The losses from major corporate frauds, such as Enron “swamp the losses from all street robberies and burglaries combined.” (Mokhiber, 2007) Furthermore, leaving victims and their families subjected to their recklessness and for some nowhere to turn. The deadly consequences of this weaponless crime is shocking and horrific. The wealthiest Americans not only steal more wealth …show more content…
and Omaha based InterNorth Inc. By the end of 1990 the company flourished and NASDAQ hit 5,000, along with groundbreaking internet stocks valued at outrageous levels. Most investors and regulators accepted the increase in share prices as the new normal, allowing the company to sky rocket to billions. Enron created an electronic trading website that focused on commodities and was the counterparty to every transaction on EOL. This enticed participants and trading partners enough that Enron was praised for its expansions and ambitious projects. They were named as America’s Most Innovative Company by the Fortune 500 between 1996 and 2001. However, when the recession began in 2000, Enron was starting to fall apart under its own weight with significant exposure to the most volatile parts of the market. “Investors and creditors found themselves on the losing end of the vanishing market cap.” (Ivestopedia, …show more content…
Shareholders lost $74 billion dollars in four years leading up to the bankruptcy and stocks closed at twenty six cents. The company was at an all-time low once allegations began to surface about their executives and accountants being changed for conspiracy, inside trading, and securities fraud. The founder and former CEO, Kenneth Lay was convicted of six counts of fraud and conspiracy and four counts of bank fraud. Unfortunately he died of a heart attack prior to his sentencing. This probably stemmed from the added stress and pressure of being caught and convicted. Regrettably, this was only the beginning for the death toll of Enron. Cliff Baxter, Enron’s former vice chairman committed suicide prior to testifying. He was a potential star witness in the scandal and had complained about the company’s risky bookkeeping practices. More than likely Baxter was aware of the accounting issues, whose idea it was, and who kept them hidden, but a dead man can’t tell any tales. Enron’s former CFO Andrew Fastow and former CEO Jeffrey Skilling were convicted and prosecuted for the part they played as well. In fact, Jeffrey was required to give $43 million dollars to the victims of the fraud. This was nothing compared to the remaining lost for the individuals that worked for the

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