The Economy, Monetary Policy, and Monopolies

Topics: Enron, Enron scandal, Tort Pages: 4 (1306 words) Published: December 1, 2013

The Internet is virtual shopping mall that allows the consumer to transact business including banking, shopping, and a host of day-to-day chores. As much as the consumer has come to rely on this new forum of exchange, it is also an instrument of many civil wrongs (cyber torts). This harm includes financial injuries, reputable damage, theft of trade secrets, and invasions of privacy.

The Enron Corporation was listed as the seventh largest company in the U.S. with over $100 billion in gross revenues and more than 20,000 employees worldwide. The Enron scandal is considered to be one of the most notorious within American history; an Enron scandal summary of events is considered by many historians and economists alike to have been an unofficial blueprint for a case study on White Collar Crime – White Collar Crime is defined as non-violent, financially-based criminal activity typically undertaken within a setting in which its participants retain advanced education with regard to employment that is considered to be prestigious. The Enron scandal deservedly was the most publicized of corporate scandals primarily because of its degree of political influences and the mysterious nature of it business transactions. Due to the actions of the Enron executives, the Company went bankrupt. The loss sustained by investors exceeded $70 billion. By misrepresenting earnings reports while continuing to enjoy the revenue provided by the investors not privy to the true financial condition of Enron, the executives of Enron embezzled funds funneling in from investments while reporting fraudulent earnings to those investors; this not only proliferated more investments from current stockholders, but also attracted new investors desiring the enjoy the apparent financial gains enjoyed by the Enron corporation. Bethany McLean and Peter Elkind, The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron (New York: Portfolio, 2003).

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