Enron Case

Enron corporation, a company establisted at 1985, in Taxes. Until 2001, it becames one of the biggest company in the world, which service for energy, natural gas and telecommunications. In 2000, the disclosure turnover reached $101 billion. Everything is going well for Enron corporation. However, at beginning of 2001, Jim - a good reputation of the short-term investment agency owner. Publicly on Enron’s profit model expressed doubts. He pointed out that alough Enron’s business looks very brilliant, but in fact they cannot really make the amount of moeny like the data shown before. No one can say they can understand how Enron is making moeny. According to the inverstment owner’s analysis, Enron’s profitability in 2000 to 5%, to the beginning

At Novermeber 8th, 2001. Enron was forced to admit made false accounts and false number. Since 1997 Enron inflate profits totaling nearly $600 million. Along with in-depth investigation, these companies who have close partnership with Enron are also found out. These parterships are mostly controlled by Enron senior officials. Enron’s huge foreign loans are often inducled in these companies, and not appear on Enron’s balance sheet. Thus up to $13 billion Enron’s huge debt for investors would not know. Otherwise, Enron;s senior management for the company;s problems are well understand, but no one speak out. On the other hand, many of the board price will continue to rise and sell share in secret. The more irnoic thing is “ Fortune Magazine named Enron as ‘America;s Most Innovative Company’ for six years in a row perior to the scandal.

Up to 65 indictments involving 53 accused, including Piandai, financial fraud, securities fraud, mail fraud, money laundering and participation in the planning, internal illegal trading and so on. US Securities and Exchange Commission (SEC) is prepared to Kenneth Lay impose a fine of more than $ 90 million, and the fine does not include the shareholders of the compensation claims. At the same time, the SEC will also disqualify Kenneth Leh from future management positions in any listed companies. Kenneth Lay died at July 5, 2006. Therefor, On 17 October, the Houston District Court dismissed a number of criminal charges against him on the grounds. October 23, the Houston District Court ruling, Jeffrey Skilling was sentenced to 24 years and 4 months in