2007-01-22 21:17:41 · 2 answers · asked by jain_call 2 in Business & Finance ➔ Corporations
Enron achieved infamy at the end of 2001 when it was revealed that its reported financial condition was sustained mostly by institutionalized, systematic, and creatively planned accounting fraud. Enron has since become a popular symbol of willful corporate fraud and corruption.
The lawsuit against Enron's directors, following the scandal, was notable in that the directors settled the suit by paying very significant amounts of money personally. Also, the scandal caused the dissolution of the Arthur Andersen accounting firm, which had effects on the wider business world.
2007-01-29 20:49:46 · answer #1 · answered by P Ni Ka 3 · 0⤊ 0⤋
Enron was the energy company that defrauded millions of $$ from investors back in the late 90's to early 2000's. The company had Arthur Anderson "cook " their books to show that the company was in a good financial standing. Rather than owning up to their stockholders they hid all financial quarterly losses. causing many investors to lose on their retirement funds, (401K) The final blow was in October 2000 when Ken Lay & Kenn Skilling were indicted, tried and imprisoned for their role in the cover up. Arthur Anderson filed for bankruptcy (Chapter 11) and no longer exists.
2007-01-22 21:27:04 · answer #2 · answered by bridluc772000 5 · 0⤊ 0⤋