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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

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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'

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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)

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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'

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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

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Enron Inno/at%on

Dere-ulat%on o+ )o#er an* ener-y

Mar to Maret%n-

9uy

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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'

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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

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,au-ht@

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$ll Goo* Th%n-s Must ,ome toan* En*

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Auest%ons