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A Case of Corporate Deceit: the Enron Way / 18 (7) 3-38
NEGOTIUM Revista Científica Electrónica Ciencias Gerenciales / Scientific e-journal of Management Science PPX 200502ZU1950/ ISSN 1856-1810 / By Fundación Unamuno / Venezuela / REDALYC, LATINDEX, CLASE, REVENCIT, IN-COM UAB, SERBILUZ / IBT-CCG UNAM, DIALNET, DOAJ, www.jinfo.lub.lu.se Yokohama National University Library / www.scu.edu.au / Google Scholar www.blackboard.ccn.ac.uk / www.rzblx1.uni-regensburg.de / www.bib.umontreal.ca / [+++] Cita / Citation: Amol Gore, Guruprasad Murthy (2011) A CASE OF CORPORATE DECEIT: THE ENRON WAY /www.revistanegotium.org.ve 18 (7) 3-38 A CASE OF CORPORATE DECEIT: THE ENRON WAY EL CASO ENRON. Amol Gore (1) and Guruprasad Murthy (2) VN BRIMS Institute of Research and Management Studies, India Abstract This case documents the evolution of ‘fraud culture’ at Enron Corporation and vividly explicates the downfall of this giant organization that has become a synonym for corporate deceit. The objectives of this case are to illustrate the impact of culture on established, rational management control procedures and emphasize the importance of resolute moral leadership as a crucial qualification for board membership in corporations that shape the society and affect the lives of millions of people. The data collection for this case has included various sources such as key electronic databases as well as secondary data available in the public domain. The case is prepared as an academic or teaching purpose case study that can be utilized to demonstrate the manner in which corruption creeps into an ambitious organization and paralyses the proven management control systems. Since the topic of corporate practices and fraud management is inherently interdisciplinary, the case would benefit candidates of many courses including Operations Management, Strategic Management, Accounting, Business Ethics and Corporate Law. -
The Enron Fraud and Scandal and What It Means to Business Today
The Impact of the Crooked “E” The Enron Fraud and Scandal And What It Means to Business Today Ed Ferrara MIS5208 – Project 1 – Examples of Corporate Fraud [email protected] Agenda § Facts About Enron – Company History § The Players – The Executives § Enron – So Many Dimensions of Fraud § A Chronology of Enron’s Collapse § The Aftermath § What It Means § References § Appendix A – Other perpetrators The Enron Players – The Executives Ken Lay – Enron Chairman and CEO David Duncan – Andersen Partner – Enron Convicted on 29 criminal counts including Partner responsible for Enron. Fired for failure to conspiracy, securities and wire fraud. Dies in exercise “due professional care and the necessary Aspen Colorado on July 5 2006 while awaiting skepticism”. Pled guilty to obstruction of justice – sentencing for his convictions.1 later rescinded plea, and struck deal with SEC.4 Jeffrey SkillinG – Enron CEO Sherron Watkins – Enron VP Internal Audit Convicted for fraud, conspiracy, insider trading and Watkins, who has never been charged with insider lying to auditors in the largest corporate fraud in trading, sold almost $50,000 in stock after her history. More than 4,000 Enron employees lost August 2001 meeting with Lay — and before Enron their jobs, many lost their life savings, when Enron shares became worthless months later. “No,” she declared bankruptcy in 2001. Investors lost billions told prosecutor John Hueston when he asked her if of dollars.2 her stock sales were proper. “I had more information than the marketplace did.”5 Andrew Fastow Charged with 78 counts of fraud due to his role in Theft using off-balance sheet entities that did business (Misappropriation) with Enron. -
Conspiracy of Fools”
Submitted version of review published in GARP Risk Review Review of “Conspiracy of Fools” Joe Pimbley Kurt Eichenwald’s Conspiracy of Fools (Broadway Books, 2005) is a spellbinding account of the rise and fall of Enron. In nearly 700 pages the reader finds answers to “what happened?” and “how did it happen?” Based on retrospective interviews with more than a hundred primary and secondary actors in this drama, the author creates multiple, parallel story lines. He jumps back and forth between these sub-plots in a manner that maintains energy and gives the reader many natural stopping points. The great strengths of Conspiracy are that it’s thorough, extremely well- written, captivating, and, finally, it rings true. The author avoids the easy, simple conclusions that all the executives are “guilty” of crimes or plain greed and that the media-lionized whistle-blower is pure of heart. We see the ultimate outcome as personal tragedies for Jeff Skilling (President) and Ken Lay (CEO) even though they are undeniably culpable. Culpability and guilt are not synonymous, however, and different readers will have widely different judgments to render on these two men. The view of Andrew Fastow is not so murky. He and a handful of his associates did indeed lie, cheat, and steal for personal gain. Fastow’s principle “contribution” to Enron was the creation of structured finance transactions to skirt accounting rules. This one-sentence description doesn’t tell the reader much. Eichenwald gives many examples to flesh out the concept. The story of “Alpine Investors” provides the simplest case. The company wished to sell the Zond Corporation, a wind-farm operator, prior to the closing of Enron’s purchase of Portland General. -
EN RON CORP. NOTICE of ANNUAL MEETING of SHAREHOLDERS May 2, 2000
EN RON CORP. NOTICE OF ANNUAL MEETING OF SHAREHOLDERS May 2, 2000 To THE S I-I AREHOLDERS: Notice is hereby given that the annual meeting of shareholders of Enton Corp. ("Enron") will be held in the LaSalle Ballroom of the Doubletree Hotel at Allen Center, 400 Dallas Street, Houston, Texas. at 10:00 a.m. Houston time on Tuesday, May 2, 2000, for the following purposes: I. To elect eighteen directors of Enron to hold office until the next annual meeting of shareholders and until their respective successors are duly elected and qualified; 2. To ratify the Board of Directors' appointment of Arthur Andersen LLP, independent public accountants, as Enton's auditors for the year ending December 31, 2000; 3. To consider a shareholder proposal from Brent Blackwelder, President, Friends of the Earth Action; 4. To consider a shareholder proposal from Dr. Julia M. Wershing; and 5. To transact such other business as may properly be brought before the meeting or any adjoumment(s) thereof. Holders of record of Enron Common Stock and Cumulative Second Preferred Convertible Stock at the close of business on March 3. 2000. will be entitled to notice of and to vote at the meeting or any adjoumment(s) thereof. Shareholders who do not expect to attend the meeting are requested to sign and return the enclosed proxy, for which a postage·paid, return envelope is enclosed. The proxy must be signed and returned in order to be counted. By Order of the Board of Directors, REBECCA C. CARTER Senior Vice President, Board Communications and Secretary Houston. -
Enron (Student Editions) Online
jJGyX [Download] Enron (Student Editions) Online [jJGyX.ebook] Enron (Student Editions) Pdf Free Lucy Prebble ebooks | Download PDF | *ePub | DOC | audiobook Download Now Free Download Here Download eBook #5327046 in Books Bloomsbury Academic 2016-01-28 2016-01-28Original language:EnglishPDF # 1 197.10 x 11.18 x 5.22l, .33 #File Name: 1472508742176 pagesBloomsbury Academic | File size: 71.Mb Lucy Prebble : Enron (Student Editions) before purchasing it in order to gage whether or not it would be worth my time, and all praised Enron (Student Editions): 0 of 0 people found the following review helpful. Piece of crapBy John StricklettExposes the playwright's laughable understanding of business and economics. Childish and naive. Little substance.Though it has some value with regards to its artistic and relatively accurate portrayal of its characters.0 of 0 people found the following review helpful. ENRON, NEVER AGAINBy Alfonso DavilaEverybody should read and watch this video!0 of 0 people found the following review helpful. For schoolBy CaseyThis book is strange but it isn't a bad read. It is a pretty short/ quick read but worth this price. The only difference between me and the people judging me is they weren't smart enough to do what we did.One of the most infamous scandals in financial history becomes a theatrical epic. At once a case study and an allegory, the play charts the notorious rise and fall of Enron and its founding partners Ken Lay and Jeffrey Skilling, who became 'the most vilified figure from the financial scandal of the century.'This -
Opening Statement of Rick Caplan
Opening Statement of Rick Caplan Before the Senate Permanent Subcommittee on Investigations July 23, 2002 Thank you Mr. Chairman and Members of the Committee. My name is Rick Caplan. I am a Managing Director of Citigroup’s Corporate and Investment Bank and co-head of the North American Credit Derivatives Group, one of several business groups at Citi that structures transactions for sophisticated corporate clients. I began working in the derivatives business at Citibank in 1997, and I first became involved in structuring certain transactions for Enron in 1999. A prepaid swap transaction – the transaction you have invited us to talk about today – is a form of structured finance. Structured financings have been used over the past several decades by virtually all sophisticated companies as a way of raising money. Just as companies always consider the tax, legal, and accounting consequences of every transaction they enter into and attempt to structure those transactions so as to achieve the most favorable results, the same is true when companies seek to finance themselves. Often times, the most efficient and effective form of financing for a company is not a straight loan, but a structured finance transaction that, in addition to generating liquidity, can address these other business considerations. Most large public companies use many different forms of structured financing. In each instance, they choose the form of financing that best addresses their unique business and capital needs. While many structured financings have the same economic impact as a loan, they often are treated differently for accounting purposes. Such transactions are commonplace in corporate America and play an integral role in our capital markets. -
Enron: Where Are They Now?
University of Tennessee, Knoxville TRACE: Tennessee Research and Creative Exchange Supervised Undergraduate Student Research Chancellor’s Honors Program Projects and Creative Work Spring 5-2004 Enron: Where Are They Now? Aaron Montgomery Vickers University of Tennessee - Knoxville Follow this and additional works at: https://trace.tennessee.edu/utk_chanhonoproj Recommended Citation Vickers, Aaron Montgomery, "Enron: Where Are They Now?" (2004). Chancellor’s Honors Program Projects. https://trace.tennessee.edu/utk_chanhonoproj/802 This is brought to you for free and open access by the Supervised Undergraduate Student Research and Creative Work at TRACE: Tennessee Research and Creative Exchange. It has been accepted for inclusion in Chancellor’s Honors Program Projects by an authorized administrator of TRACE: Tennessee Research and Creative Exchange. For more information, please contact [email protected]. Enron: Where Are They Now? Aaron Montgomery Vickers Senior Honors Project 4/30/04 Table Of Contents Introduction ....................................................................................................................... 1 The Collapse Firsthand .................................................................................................... 2 The Fastows, First to Fall ............................................ ,.................................................... 9 Jeffrey Skilling at Rock Bottom .................................................................................... 13 Conclusion ...................................................................................................................... -
Sarbanes-Oxley and Corporate Greed Adria L
University of Connecticut OpenCommons@UConn Honors Scholar Theses Honors Scholar Program Spring 5-8-2011 Sarbanes-Oxley and Corporate Greed Adria L. Stigliano University of Connecticut - Storrs, [email protected] Follow this and additional works at: https://opencommons.uconn.edu/srhonors_theses Part of the Accounting Commons, and the Business Law, Public Responsibility, and Ethics Commons Recommended Citation Stigliano, Adria L., "Sarbanes-Oxley and Corporate Greed" (2011). Honors Scholar Theses. 207. https://opencommons.uconn.edu/srhonors_theses/207 Sarbanes-Oxley & Corporate Greed Adria L. Stigliano Spring 2011 Sarbanes-Oxley & Corporate Greed Adria L. Stigliano Spring 2011 Adria L. Stigliano Honors Thesis Spring 2011 Sarbanes-Oxley and Corporate Greed Sigmund Freud, the Austrian psychologist, believed that every human being is mentally born with a “clean slate”, known as Tabula rasa , where personality traits and character are built through experience and family morale. Other psychologists and neurologists believe individuals have an innate destiny to be either “good” or “bad” – a more fatalistic view on human life. Psychological theories are controversial, as it seems almost impossible to prove which theory is reality, but we find ourselves visiting these ideas when trust, ethics, reputation, and integrity are violated. The Sarbanes-Oxley Act is still a relatively new federal law set forth by the Securities Exchange Commission in 2002. Since its implementation, individuals have been wondering if Sarbanes-Oxley is effective enough and doing what it is meant to do – catch and prevent future accounting frauds and scandals. With the use of closer and stricter rules, the SOA is trying to prevent frauds with the use of a created Public Company Accounting Oversight Board. -
Understanding LJM
McCullough Research 6123 S.E. Reed College Place Portland, Oregon 97202 Voice: 503-771-5090 Fax: 503-771-7695 Internet: [email protected] Memorandum Date: February 7, 2002 To: McCullough Research Clients From: Robert McCullough Subject: Understanding LJM Overview Near the end of 1999, Enron established a very thin “unaffiliated” entity named “LJM” managed by Andrew Fastow, Enron’s Chief Financial Officer, that was designed to allow a series of off-balance sheet transactions with Enron. The Powers Report has identified this and its follow-on Special Purpose Entities (SPEs) as a critical issue in corporate governance and argues persuasively that they had little economic merit. The report also questions whether they should ever had been unconsolidated.1 A careful review clearly indicates that while their consistency with Enron’s governance may have been in question, they were part of Enron’s overall financial strategy and were used to finance other major groups of SPEs including Osprey and Whitewing. Logically, these additional SPEs should also have been consolidated in 3rd Quarter of 2001 along with Swap Sub and Chewco. The feverish ingenuity of the LJM subsidiaries and partnerships seems to reflect a race between Andrew Fastow and Arthur Andersen. There is a strong impression that Enron’s Chief Financial Officer was trying to invent solutions to traditional accounting prohibitions faster than his auditors 1Consolidated means added together for financial reporting purposes. Unconsolidated entities would not show up in the balance sheet -
JEFF D. MAKHOLM Senior Vice President National Economic
JEFF D. MAKHOLM Senior Vice President National Economic Research Associates, Inc. 200 Clarendon Street Boston, Massachusetts 02116 (617) 927-4540 Dr. Makholm concentrates on the issues surrounding the privatization, regulation and deregulation of energy and transportation industries—those that operate networks (such as oil and gas pipelines, electricity transmission and gas distribution systems, telecommunications and water utility systems) and those operating infrastructure business at specific sites, such as oil refineries, electricity generation plants, gas treatment plants, sewage treatment plants and airports. These issues include the broad categories of efficient pricing, market definition and the components of reasonable regulatory practices. Specific pricing issues include tariff design, incentive ratemaking, and the unbundling of prices and services, and analysis of energy commodities markets. Issues of market definition include assessments of mergers, including the identification and measurement of market power. Issues of reasonable regulatory practices include the creation of credible and sustainable accounting rules for ratemaking as well as the establishment of administrative procedures for regulatory rulemaking and adjudication. On such issues among others, Dr. Makholm has prepared expert testimony, reports and statements, and has appeared as an expert witness in many states, federal and U.S. district court proceedings as well as before regulatory bodies and Parliamentary panels abroad. Dr. Makholm’s clients in the United States include privately held oil, gas and utility corporations, public corporations and government agencies. He has represented dozens of gas and electric distribution utilities, as well as both intrastate and interstate oil and gas pipeline companies and oil, gas and electricity producers. Dr. Makholm has also worked with many leading law firms engaged in issues pertaining to the local and interstate regulation of energy utilities. -
Liquid Assets: Enron's Dip Into Water Business Highlights Pitfalls of Privatization
Liquid Assets: Enron's Dip into Water Business Highlights Pitfalls of Privatization A special report by Public Citizen’s Critical Mass Energy and Environment Program Washington, D.C. March 2002 Liquid Assets: Enron's Dip into Water Business Highlights Pitfalls of Privatization A special report by Public Citizen’s Critical Mass Energy and Environment Program Washington, D.C. March 2002 This document can be viewed or downloaded at www.citizen.org/cmep. Public Citizen 215 Pennsylvania Ave., S.E. Washington, D.C. 20003 202-546-4996 fax: 202-547-7392 [email protected] www.citizen.org/cmep © 2002 Public Citizen. All rights reserved. Public Citizen, founded by Ralph Nader in 1971, is a non-profit research, lobbying and litigation organization based in Washington, D.C. Public Citizen advocates for consumer protection and for government and corporate accountability, and is supported by over 150,000 members throughout the United States. Liquid Assets: Enron's Dip into Water Business Highlights Pitfalls of Privatization Executive Summary The story of Enron Corp.’s failed venture into the water business serves as a cautionary tale for consumers and policymakers about the dangers of turning publicly operated water systems and resources over to private corporations and creating a private “market” system in which water can be traded as a commodity, as Enron did with electricity and tried to do with water. Enron’s water investments, which contributed to the company’s spectacular collapse, would not have been permitted had the Public Utility Holding Company Act (PUHCA) been properly enforced and not continually weakened by the deregulation initiatives advocated by Enron and other energy companies. -
Ebook Download Enron the Rise and Fall 1St Edition Ebook
ENRON THE RISE AND FALL 1ST EDITION PDF, EPUB, EBOOK Loren Fox | 9780471478881 | | | | | Enron The Rise and Fall 1st edition PDF Book It was very informative and if I was interested I would be more inclined to finish it. The story of Enron is one that will reverberate in global financial and energy markets as well as in criminal and civil courts for years to come. It was reported at the time that Moody's and Fitch , two of the three biggest credit-rating agencies, had slated Enron for review for possible downgrade. November 15, At the beginning of , the Enron Corporation, the world's dominant energy trader, appeared unstoppable. Event occurs at Konzelmann September By using the site, you consent to the placement of these cookies. Other editions. Of the three books [including Pipe Dreams and Anatomy of Greed ], this one offers the most detailed explanation of Enron as a business. While it breaks no new ground, the tool kit provides, in one place, an overview of the accounting and auditing literature, SEC requirements and best practice guidance concerning related party transactions. Archived from the original on March 22, Indergaard Rutgers University Press, Please, though, remember this: Never take customer and employee confidence for granted. I found an organization that, in the spirit of the last decade, over-reached; Chairman Kenneth Lay, Jeffrey Skilling, and company believed they could transform a pipeline operator into a virtual corporation that traded a dizzying. This is a dummy description. In addition, the company admitted to repeatedly using "related-party transactions," which some feared could be too-easily used to transfer losses that might otherwise appear on Enron's own balance sheet.