Enron ScandalEnron Scandal

Rebecca Klinger & Aaron Rebecca Klinger & Aaron CooperCooper

What is it.What is it.

• Enron was formed in 1985 by Kenneth Lay After merging Houston natural Gas.

• Revealed in October 2001.• Eventually led to the bankruptcy of

Enron corporation. • Basically was a energy company

caught in an accounting scandal. • Enron's $63.4 billion in assets made it

the largest corporate bankruptcy in U.S. history.

scandalscandal

• After 1985 when Jeffery Skilling was hired he developed a staff of executives that, through the use of accounting loopholes, special purpose entities, and poor financial reporting were able to hide billons of dollars in debt from failed deals and projects.

Scandal Scandal

Chief financial officer Andrew Fastow and other executives not only misled Enron’s board of directors and audit committee on high-risk accounting practices, but also pressured Arthur Anderson to ignore the issues.Many executives at Enron were indicted for a variety of charges and were later sentenced to prison.

• Mug shot of Kenneth Lay.

• Andrew Fastow

• http://www.youtube.com/watch?v=2GdvKh3Gr3E