Enron is a now defunct company was at the center of one of the most famous corporate scandals in history. The enormity of the company's improprieties caused the Enron name to become virtually synonymous with white collar crime. Enron's stock price fell from over $90 in August 2000 to 12 cents in January 2002. The company filed for Chapter 11 bankruptcy protection in December 2001.
The accounting schemes perpetrated inside Enron were very complex, often involving multiple legal entities and highly questionable accounting treatments. Several Enron executives were charged with illegal actions, including Enron CEO Jeffrey Skilling, who was convicted of multiple charges related to Enron's collapse. Although only 19 executives pleaded guilty or were convicted for their part in the scandal, Enron had more than 20,000 employees before the scandal hit. This means that many innocent employees likely suffered from their former employer's tainted reputation. Enron scandal is considered to be one of the main causes for the passage of the Sarbanes-Oxley Act of 2002 which imposed strict new reforms aimed at preventing Enron-style abuses. (For related reading, check out Enron's Collapse: The Fall Of A Wall Street Darling
No comments:
Post a Comment