• Enron Corporation, an energy, commodities, and service company based in Houston Texas, filed for bankruptcy on December 2 2001

Scandal

• 25,000 employees lost their jobs

• Employees lost their investments

• CEO Jeffery Skilling and Chairman Kenneth Lay were charged with conspiracy securities fraud, and insider trading

• Enron executives used Special Purpose Entities & Mark- to- Market accounting to hide debt& alter financial statements, breaking trust requiring severe punishment to prevent similar misconduct

• 2 billion dollars in pension saving & 1.2 billion dollars in retirement funds were lost

People Involved

• VP Sherron Watkins exposed fraudulent activities in 2001

• CEO Jeffery Skilling

• Chairman Kenneth Lay