Guide Note

Enron was an energy company based in Houston, Texas. It was one of the world's largest providers of electricity, natural gas, pulp and paper, and communications systems. In 2001 it was revealed that the company's success was based largely on a massive, institutionalized, accounting fraud scheme that eventually led to Enron's bankruptcy and the dissolution of the Arthur Anderson accounting firm. Appeal trials for the executives indited in the case are ongoing.

Fast Facts

Founded 1985
Claimed $111 billion in revenues in 2000
Founder and former chairman: Kenneth Lay
Former president and CEO: Jeffrey Skilling
Declared bankruptcy in 2001
In 2001 it was discovered that the reported financial condition was the result of widespread, institutionalized, accounting fraud
Falsifying financial reports allowed Enron to drive up the price of its own stock
Fraud revelation led to Enron's bankruptcy and the dissolution of the Arthur Anderson accounting firm

Scandal

In 2001, it was revealed that numerous "creative" accounting methods had allowed Enron to commit fraud by inflating revenue figures. The company filed for bankruptcy on December 2, 2001, and Enron's shares dropped from $90.00 to $.50 on the NYSE, creating a disasterous financial situation for many share-holders.

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News | Business News | Corporations in the News | Business and Finance | Companies | Scandals

View Note History

Enron

The Mahalo Top 7

Official Site: Enron Creditors Recovery Corp.
Wikipedia: Enron
opensecrets: Enron and Andersen
TIME: Behind the Enron Scandal
The Smoking Gun: Enron Code of Ethics
The New York Times: Why Surprises Still Lurk After Enron (February 29, 2008)
YouTube: Olberman explains the Enron Loophole (Time 9:18)

Enron News

Google News: Enron
Houston Chronicle: 3 Enron Figures Lose Broadband Appeal (March 17, 2008)
- "The government contended that all three conspired to overstate capabilities of Enron's broadband network and software to generate enthusiasm on Wall Street and enrich themselves by selling shares inflated by the hype."
Wall Street Journal: Skilling Pins His Appeal on FBI Notes (March 17, 2008)
Lansing State Journal: $11M Will Be Restored to Enron Settlement Fund (March 17, 2008)
The Associated Press: Enron Founder's Widow Sued by Condo (March 16, 2008)
The New York Sun: Texas Objects To Enron Fees (March 13, 2008)
The New York Sun: Judge To Mull $695 Million Legal Fee (February 29, 2008)

Enron Background and Profiles

Enron Timelines

Wikipedia: Timeline of the Enron Scandal
The New York Times: The Rise and Fall of Enron
Washington Post: Timeline of Enron's Collapse (September 30, 2004)

Accounting Scandal 2001

Wikipedia: Enron Scandal
Houston Chronicle: The Fall of Enron
BBC News: The Enron Affair

Enron Videos and Images

YouTube: Olberman explains the Enron Loophole (Time 9:18)

Enron Blogs and Commentaries

Moneyweb: Spawn of Enron (March 18, 2008)
The Voice for School Choice: Enron Liked to Make Up Numbers Too (March 18, 2008)
American Thinker Blog: Did the Prosecution Illegally Withhold Exculpatory Evidence... (March 16, 2008)
Ideoblog: The Cloud over the Enron Prosecution (March 15, 2008)

Related Searches

Kenneth Lay | Jeffrey Skilling | Arthur Anderson