Enron Scandal Rebecca Klinger & Aaron Cooper

What is it. Enron was formed in 1985 by Kenneth Lay After merging Houston natural Gas. Revealed in October 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.

scandal 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 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

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