![]() ![]() Founder Kenneth Lay died of a heart attack before he was sentenced. After stocks plummeted, the SEC conducted an investigation that ultimately resulted in the 24-year, 4-month prison sentence of Skilling and six-year sentence of Fastow. Andrew Fastow, COO, deceived the board of directors about the company’s accounting practices and convinced Arthur Anderson to go along for the ride. ![]() ![]() Jeffrey Skilling, who served as president COO and CEO, along with a staff he assembled, hid billions of dollars of debt through poor financial reporting, accounting loopholes and the use of special purpose entities. However, even during its rise in the ’90s, rumors swirled that it was involved in illegal accounting procedures with its accounting firm Arthur Anderson, then one of the “Big Five” accounting firms. With revenues exceeding $100 billion and the distinction of being named by Fortune as “America’s Most Innovative Company,” Enron was a seemingly indestructible energy giant during the beginning of the 2000s. The next time you hear about someone receiving a 12-year sentence because of a marijuana offense, remember the real harm done in these cases of corporate corruption. ![]() The work of a small handful of people can result in the demise of a multi-billion dollar company, the complete loss of value of its stock, and most problematically, the loss of numerous jobs ranging from the innocent higher-ups to the hardworking office managers. Since the collapse of Enron a decade ago due to shoddy and deceptive accounting practices, America has become more aware of the seriousness of white collar crimes. Written By Staff Last Updated: May 29, 2020 ![]()
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