The start of Enron was created between two companies coming together as one. Houston Natural Gas and InterNorth. Houston Natural Gas was formed in the 1920s from the Houston Oil Company. InterNorth began in 1930 as Northern Natural Gas Company in Omaha, Nebraska. InterNorth was one of the nations premier pipeline networks and bought out Houston Natural Gas in May of 1985 for 2.4 billion dollars. The New company name was know as HNG-InterNorth with a new CEO named Kenneth Lay who then renamed the business to Enron. Enron was now the second largest natural gas and electricity company in the United States; which stretched over 36000 miles, with the largest portfolio of natural gas risk management contracts and trading products.
It began in …show more content…
CEO Ken Lay and Jeff Skilling were found guilty on 19 counts of security and wire fraud Skilling was sentenced to 24 years in prison and fines over several millions of dollars. Lay was waiting sentencing and suddenly died of a heart attack while on a skiing trip. When they forced a void and all charges would be dropped. It’s ironic to see someone as prestigious as Ken Lay gets away with something like the Enron Scandal. Many speculations have been placed on what really happened; if he faked his death? Is he still alive today? Or did he really die of a heart attack? CFO Andrew Fastow was the first person to come to the government about the Enron scandal. Everyone was using him as an escape goat. They were placing on the blame on him and that it was his entire fault. Fastow then decided to go the feds and got a plea bargin. Andrew Fastow only got 10 years in prison, which will end in …show more content…
Enron told all employs they had 20 minuets to go into work grab and collect their belongings and leave. They were also informed that they had just received their last paycheck and that you they would receive no more money. Keep in mind this was done three weeks before Christmas. Enron did not just ruin the life of Enron employees, but also several other companies. All of Enron’s off shore accounts and companies were also closed and shut down. All of Arthur Anderson was closed down and nothing was left over. All of Enron’s employs had maxed out there 401K and pensions into Enron’s stock and when they failed all the money went with it. Interviews that were asked to Enron’s employee said they had over three hundred thousand invested into Enron’s stocks and when it crashed he had only 9 dollars remaining in the stocks. This made several thousands of employees start all over again. Elderly had to go back to work; people lost all their money they were planning on living on, while all of Enron’s executives cashed out millions of
It began in …show more content…
CEO Ken Lay and Jeff Skilling were found guilty on 19 counts of security and wire fraud Skilling was sentenced to 24 years in prison and fines over several millions of dollars. Lay was waiting sentencing and suddenly died of a heart attack while on a skiing trip. When they forced a void and all charges would be dropped. It’s ironic to see someone as prestigious as Ken Lay gets away with something like the Enron Scandal. Many speculations have been placed on what really happened; if he faked his death? Is he still alive today? Or did he really die of a heart attack? CFO Andrew Fastow was the first person to come to the government about the Enron scandal. Everyone was using him as an escape goat. They were placing on the blame on him and that it was his entire fault. Fastow then decided to go the feds and got a plea bargin. Andrew Fastow only got 10 years in prison, which will end in …show more content…
Enron told all employs they had 20 minuets to go into work grab and collect their belongings and leave. They were also informed that they had just received their last paycheck and that you they would receive no more money. Keep in mind this was done three weeks before Christmas. Enron did not just ruin the life of Enron employees, but also several other companies. All of Enron’s off shore accounts and companies were also closed and shut down. All of Arthur Anderson was closed down and nothing was left over. All of Enron’s employs had maxed out there 401K and pensions into Enron’s stock and when they failed all the money went with it. Interviews that were asked to Enron’s employee said they had over three hundred thousand invested into Enron’s stocks and when it crashed he had only 9 dollars remaining in the stocks. This made several thousands of employees start all over again. Elderly had to go back to work; people lost all their money they were planning on living on, while all of Enron’s executives cashed out millions of