Enron - 1662 Words

The Illusion That Took the World by Surprise Enron: The Smartest Guys In the Room is a movie about Enron and how it fooled the world into believing it was one of the most stable and profitable companies in the U.S. This is very sad because many people believed in the figures Enron was producing and entrusted their life saving in Enron stock. The scandal didn’t just affect a small group of people but 10’s of thousands of people lost everything, due to an illusion. Kenneth Lay earning a Ph.D. in economics at the University of Houston joined Houston Natural Gas Co. as chairman and CEO. The company merged with InterNorth in 1985, and was later renamed Enron Corp. In 1986, Lay was appointed to chairman and chief executive officer of†¦show more content†¦It started with the Valhalla scandal where he begged traders to gamble with millions in the gas commodity sector then he hired Skilling to run the financials and bring mark to market so he can manipulate the balance sheet. Then allowing Fastow to make hundreds for false partnerships to hide debt. There was no length that Lay wouldn’t go to in order to see his company succeed. In 2001, Lay sold large amounts of Enron stock in September and October as its share price fell. All told, he liquidated more than $300 million in Enron stock. Enron filed for bankruptcy in December 2001—the biggest bankruptcy filing in U.S. history at the time, costing 20,000 employees their jobs and many their life savings, and losing billions for investors. In July 2004, Lay was indicted for his role in the company s collapse, including 11 counts of securities fraud, wire fraud, and making false and misleading statements. On May 25, 2006, Lay was found guilty on all six counts of conspiracy and fraud. His sentencing was scheduled to take place on October 23, 2006. But died of a heart attack while on vacation in Colorado. Skilling unexpectedly resigned and sold almost $60 million in Enron shares. The company declared bankruptcy in December 2001. Jeff Skilling was convicted of multiple federal felony charges in 2006, which including insider trading, securities fraud, and making false statements toShow MoreRelatedEnron Of Enron And Enron1209 Words   |  5 PagesEnron Cooperation, is a company that was based in Houston Texas and was an energy company. This company filed bankruptcy in 2001 leaving a lot of its employees that had no knowledge about what was going on jobless and the company investors losing a lot of money. This was one of biggest companies in the united states, it had a lot of assets all over the country and was operating on a lot of profit that nobody knew how and why. The movie, â€Å"Enron, The smartest guy in the room† shows that the companyRead MoreEnron : Enron And Enron1143 Words   |  5 PagesEnron was formed in July 1985 by the merger of InterNorth and Houston Natural Ga s (Enron Fast Facts, 2015). 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Enron was the rank 16 of Fortune 500 in 2000. In 2001 it revealed that Enronâ€℠¢s financial report was planned accounting fraud, known since as the Enron scandal. In the Enron scandal, Enron used fraudulent accounting practices to coverRead MoreThe, Enron, And Enron1844 Words   |  8 PagesThe complete destruction of companies including Arthur Andersen, HealthSouth, and Enron, revealed a significant weakness in the United States audit system. The significant weakness is the failure to deliver true independence between the auditors and their clients. In each of these companies there was deviation from professional rules of conduct resulting from the pressures of clients placed upon their auditors (Goldman, and Barlev 857-859). Over the years, client and auditor relationships were intertwinedRead MoreEnron : The Collapse Of Enron1644 Words   |  7 PagesEnron was once one of the world s leading energy companies by reshaping the way natural gas and electricity were bought and sold. They filed the largest corporate bankruptcy in American history in 2001. Enr on Corporation was an energy company running out of Texas that was started when two companies, Houston Natural Gas and InterNorth, merged together in 1985. By 1992, Enron became the largest seller of natural gas in North America and began to offer other services like wholesaler trading and riskRead MoreThe Enron Scandal Of Enron Essay1458 Words   |  6 Pagesevent that took place in our economy was the Enron Scandal, which happened in late 2000 and lasted into the following year. Those who were involved in this incident directly such as CEO’s Ken Lay and Jeff Skilling thought what they were doing was not wrong and that they were able to get away with making millions falsely (Seabury, 2008). However, this was a serious crisis situation and many people were affected through the process as well as their money. Enron was valuing themselves at a higher priceRead MoreEnron : The Demise Of Enron1740 Words   |  7 PagesEnron was a corporation that reached heights unknown, only t o watch it fall apart from the inside out based on a foundation of falsehoods and cheating. Enron established a business culture that flourished on competition and was perceived in society as an arrogant corporation, mainly because of its corporate leadership. The fairytale of Enron actually ended as a nightmare with it destroyed by one of America’s largest bankruptcies in history. The demise of Enron impacted the livelihood and futuresRead MoreThe Enron Scandal Of Enron1052 Words   |  5 Pagesskeptical about accountants’ reliability when the Enron scandal occurred. In October 2001, SEC started an investigation against Enron for improper accounting practice. According Sherron S. Watkins, the former vice president for corporate development, Enron failed to disclose complicated deals with its partnerships to inflate the stock price. In a report by Enron’s law firm, Arthur Andersen, the accounting firm that was in charge of auditing Enron, was involved and faile d to report the partnership