Enron Essay

Only available on StudyMode
  • Download(s) : 195
  • Published : October 17, 2011
Open Document
Text Preview
Enron Essay

Enron was a company that was founded in 1985, who started Enron was Kenny Lay. Enron first started with natural gas pipelines company from the merge with Houston Natural Gas. In 1999 Eron expanded in different fields like, financial division and the website that allowed the traders to trade stocks of the company. The persons who help Kenny Lay with the fraud in Enron where, Jeff Skilling who was the CEO of Enron, Andy Fastow who was the CFO and Official Financial. Fastow cook the books, he open many investment partnership with companies as as Merill Lynch, and J.P Morgan Chase. Fastow promised them Eron stocks. Lou Pai he was CEO of Eron Energy Services, he left Eron with over $250 million he became the second largest land owner in Colorado, he purchased the 77,500 acre.

What made them make fraud was the ambition and greed. They misled their employees by telling them to buy stocks of the company. One of their biggest fraud was in California with the Energy Company, making block out, specially in the summer. They manipulate the prices of energy in California, Enron bought in California the energy cheap and exported it to others states, where they sell the energy for about 5 times the buying prices. Jeff Skilling was convicted of multiple federal felony charges relating to Eron financial collapse and is currently serving a 24 years 4 month prison sentence in the Federal Correction Institution in Eaglewood Colorado. Kenny Lay was indicted by a grand jury on 11 counts of securities fraud and related charges. He was found guilty on May 25, 2006 of 10 counts against him. Lay could have face 20 to 30 years in prison. He died will vacationing in Snowmass, Colorado on July 5, 2006, about three months before his scheduled October 23 sentencing. He died of a heart attack. Analysis

Enron was a very big company in the United State in America. The owner of Enron was Kenny Lay he was a very smart guy, and Jeff Skilling was...
tracking img