Wednesday, October 25, 2006

Enron Scandal

On July 25, Jeffrey Skilling (President and CEO) and Kenneth Lay were found guilty of defrauding investors by usig off-the-books delas to hide debt and inflate profits. Enron, once US’s 7th largest company, collapsed into bankruptcy in December 2001 when the deals were disclosed. It wiped out thousands of jobs, more than $60 bn in market value and more than $2 bn in pension plans.

Kenneth Lay, the founder and Chairman of Enron who died in July is freed of charges by a federal judge. Lay was convicted on ten counts of fraud, conspiracy and lying to banks.

The other people convicted in the episode include:
Andrew Fastow, the Chief Financial Officer
Richard Causey, Chief Accounting Officer
Ben Glisan Jr., Treasurer
Lea Fastow, Assistant Treasurer
David Delaniey, CEO of Enron North America