The Enron Scandal: Analysis

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1. Enron Enron was a major energy corporation based in Houston Texas that experienced a great deal of success during the 90’s. In fall of 2001 it was discovered that everything people had come to know about the Enron Corporation was a lie. From the outside looking in it had appeared that Enron was a very profitable business whose stock was worth investing in, when in reality the company was billions of dollars in debt. The Enron illusion was carried out by the major executives within the company such as CEO Jeffery Skilling and Chairman Kenneth Lay. These major executives were involved in the misappropriation of billions of dollars in Enron funds which they in turn benefitted from. By paying off the Arthur and Anderson auditing firm Enron was able to successfully falsify their financial statements to say whatever they wanted them to. While these executive enjoyed the luxury that came from this scandal 20,000 employees lost their jobs and medical support, and 1.2 million dollars in retirement funds were lost. The movie ends with the saying “Ask Why?” which was once the corporation’s slogan. Overall I was surprised by the way these men basked in the benefits of their scam at everyone else’s expense and showed no feeling of guilt or remorse. I find it both interesting and alarming that a scandal such as Enron was not only able to succeed but also lasted for a long period of time before anyone caught on. In the end Jeffery Skilling was deprived of 45 million dollars in family assets and sentenced to 24 years in prison for securities fraud and insider trading. Kenneth Lay was found guilty of six accounts of conspiracy and fraud, but passed away on a family vacation prior to his sentencing. 2. World Com World Com originally began in 1983 under the name Long Distance Discount Service (LDDS) and rose to become one of the world’s largest telecommunications

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