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, Houston News.
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 disastrous financial situation for many share-holders.
Enron Background and Profiles
References
Fast Facts
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Fact:
Founded 1985
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Claimed $111 billion in revenues in 2000
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Founder and former chairman
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Former president and CEO
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Declared bankruptcy in 2001
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In 2001 it was discovered that the reported financial condition was the result of widespread, institutionalized, accounting fraud
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Falsifying financial reports allowed Enron to drive up the price of its own stock
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Fraud revelation led to Enron's bankruptcy and the dissolution of the Arthur Anderson accounting firm
