The Effects Of The Enron Scandal

1383 Words 6 Pages
Introduction
The Enron Scandal will forever live in its infamy. How can such a powerful company once ranking at number seven as one of the top ten companies in America cause its own demise? The answer lies in the fact that all great empires fall due to the greed of money and power by its conquerors. Who are willing to do anything to maintain the luxury of being the top in the world. Enron portrayed to be a profitable and unshakable company. However it later came to light that the majority of Enron's earnings were largely made of paper profit. The masters behind this scheme were traders and executives who executed expert accounting skills. Enron could no longer hide its deep debt when information of their actions surfaced. They had no choice
…show more content…
The CEO of Enron, Kenneth Lay helped weave the web of lies that Enron’s fake revenue was actually real. Chief Executive, Jeffrey K. Skilling, also partook in this scheme. Lay and Skilling were confronted by over a dozen counts of fraud and conspiracy through the trail of the Scandal. Both were the most famous characters in the scandal. However there was others who contributed to the fall of Enron by helping in falsifying the increase of Enron’s revenue, and concealing its debt.CFO, Andrew Fastow, was another mastermind and contributor of the fall of Enron. The New York Times, reported that “he raised huge amounts of capital that Enron needed as it moved beyond its roots in the natural gas business to blaze trails as an innovative energy powerhouse.” (The New York Times, 2006). Ben F. Glisan Jr. joined Enron in 1996. Working mainly on Enron’s account he contributed to the scandal by meticulously executing false accounting that concealed the losses of Enron. In 2006, after being indicted with more than 24 charges of conspiracy, Glisan only pleads guilty to only one count out of those charges . Mark E. Koenig, the director of investor relations of Enron of the time controlled and was in charge of the calls that were taking place between the company’s executives and Wall Street analysts. Koenig contributed and was aware about the attempts to deceive investors. He later pleads guilty to one count of aiding and abetting securities fraud during Enron’s scandal trial. Lou Lung Pai was in charge of numerous divisions of the company. Several months before Enron files for Chapter 11 bankruptcy, Pai resigns and is not charged with any counts of fraud or conspiracy. Kenneth D. Rice and other executives according to the New York Times, “was accused of making misleading statements about the capabilities of the technology and the performance of their division, resulting in an artificial inflammation in the value of the

Related Documents