Post on 06-Jul-2018
8/17/2019 Docslide.us Enron Scandal for Students
1/11
Enron: The Fall Of A WallStreet Gem
A brief Intro to the Enron Scandal – for Students preparing to watch “The SmartestGuys in the Room”
Instructor: Tom MatysDPR105: INFO MGMT SYSTEMS
http://www.investopedia.com/articles/stocks/09/enron-collapse.asphttp://www.investopedia.com/articles/stocks/09/enron-collapse.asphttp://www.investopedia.com/articles/stocks/09/enron-collapse.asphttp://www.investopedia.com/articles/stocks/09/enron-collapse.asphttp://www.investopedia.com/articles/stocks/09/enron-collapse.asphttp://www.investopedia.com/articles/stocks/09/enron-collapse.asphttp://www.investopedia.com/articles/stocks/09/enron-collapse.asp
8/17/2019 Docslide.us Enron Scandal for Students
2/11
Enron: The Players
enneth !ee "en" !ay#as an $mer%can&us%nessman' (e played
a leading role %n thecorru)t%on scan*al thatle* to the *o#n+all o+Enron ,or)orat%on'
8/17/2019 Docslide.us Enron Scandal for Students
3/11
Enron: The Players
• guilty on one count o+ cons)%racy• guilty on one count o+
%ns%*er tra*%n-• guilty on ./e counts o+
ma%n- +alse statements toau*%tors
• guilty on t#el/e counts o+secur%t%es +rau*
• not guilty on n%ne counts o+ %ns%*ertra*%n-
Jerey Skilling: CEO Enron
http://en.wikipedia.org/wiki/Conspiracy_(crime)http://en.wikipedia.org/wiki/Insider_tradinghttp://en.wikipedia.org/wiki/Making_false_statementshttp://en.wikipedia.org/wiki/Securities_fraudhttp://en.wikipedia.org/wiki/Securities_fraudhttp://en.wikipedia.org/wiki/Making_false_statementshttp://en.wikipedia.org/wiki/Insider_tradinghttp://en.wikipedia.org/wiki/Conspiracy_(crime)
8/17/2019 Docslide.us Enron Scandal for Students
4/11
Enron: The Players
ndy Fastow: CFO Enron
Andy Fastow was one of thekey gres &eh%n* the com)le#e& o+ o23&alance3sheet s)ec%al)ur)ose ent%t%es 4l%m%te*)artnersh%)s #h%ch Enroncontrolle* use* to conceal the%rmass%/e losses' Fasto# ser/e* a
s%3year )r%son sentence +orchar-es relate* to these acts'
8/17/2019 Docslide.us Enron Scandal for Students
5/11
Enron: The Players
Enron!s A""onting Firm:
The Po#ers ,omm%ttee 4a))o%nte* &y Enron6s &oar* to loo%nto the .rm6s account%n- %n Octo&er 7001 came to the+ollo#%n- assessment: "The e/%*ence a/a%la&le to us
su--ests that $n*ersen *%* not +ul.ll %ts )ro+ess%onalres)ons%&%l%t%es %n connect%on #%th %ts au*%ts o+ Enron6s.nanc%al statements8 or %ts o&l%-at%on to &r%n- to theattent%on o+ Enron6s 9oar* 4or the $u*%t an* ,om)l%ance,omm%ttee concerns a&out Enron6s %nternal contracts o/erthe relate*3)arty transact%ons' 3 ;%%)e*%a
8/17/2019 Docslide.us Enron Scandal for Students
6/11
Enron Inno/at%on
Dere-ulat%on o+ )o#er an* ener-y
Mar to Maret%n-
9uy
8/17/2019 Docslide.us Enron Scandal for Students
7/11
Enron: ;hat They D%*
,la%me* +uture )ro.ts as current )ro.tsShre**e* e/%*ence
,on-ress )asses SO=
In%t%ally h%* )ro.ts &y mo/%n- cash %nto)ersonal accounts
,ost 708000 >o& losses
70 m%ll%on %n ret%rement +un*s #ere lost'
8/17/2019 Docslide.us Enron Scandal for Students
8/11
Enron: The 9ottom !%ne
?100 &%ll%on %n re/enue +rom
ener-y -%ant Enron #as +oun* to ha/esusta%ne* %tsel+ &y means o+ %nst%tut%onalan* systemat%c account%n- +rau*
http://en.wikipedia.org/wiki/Energy_companyhttp://en.wikipedia.org/wiki/Enronhttp://en.wikipedia.org/wiki/Accounting_scandalshttp://en.wikipedia.org/wiki/Accounting_scandalshttp://en.wikipedia.org/wiki/Enronhttp://en.wikipedia.org/wiki/Energy_company
8/17/2019 Docslide.us Enron Scandal for Students
9/11
,au-ht@
8/17/2019 Docslide.us Enron Scandal for Students
10/11
$ll Goo* Th%n-s Must ,ome toan* En*
8/17/2019 Docslide.us Enron Scandal for Students
11/11
Auest%ons