Dates
When was Enron founded?
1985
Who was the 1st CEO of Enron, the founder of Enron?
Kenneth Lay
The company was based in this state.
What is Houston, Texas?
This is the type of company that Enron began as:
What is a natural gas pipeline company?
What auditing firm did the public lose confidence in after the fall of Enron? This accounting firm failed to report Enron's various accounting irregularities.
Arthur Anderson
Jeff Skilling was Enron's COO. When did Jeff Skilling become CEO of Enron?
February 2001
Who was the Chief Financial Officer of Enron? He was Jeff Skilling's first hire at Enron and he became the pioneer of the RAPTORS.
Andrew Fastow
Enron artificially inflated the prices of their owned stocks by providing misleading information and committing fraud to better their books. This "SCHEME" spread false/misleading info to create a buying frenzy that will “pump” up the price of a stock and then “dump” their own shares at the inflated price.
What is PUMP & DUMP inesting?
The accounting practice that allowed the ability to book profits before plants, investments, and contracts begin operating based on models and assumptions of future values, not cash actually received.
What is Mark-to-Market Accounting?
What stakeholders suffered as a result of Enron's insolvency?
Employees, shareholders, creditors, energy industry, board of directors
When did Jeff Skilling resign as CEO of Enron?
August 2001
He sold 93,000 shares for a personal gain of $2 million after the 401k was frozen and employees could no longer sell their shares.
Who is Ken Lay?
This is what Arthur Anderson did to bring about charges of "obstruction of justice", which led to the dissolution of their company.
What is shredded documents?
JP Morgan, Chase, Merill Lynch, Citibank, Suisse First Boston
Who were Enron's banks?
How many employees lost their jobs as a result of the scandal by Enron?
30,000 employees
When did Enron file for Chapter 11 Bankruptcy?
December 2, 2001
Who became Enron's CEO after Skilling resigned?
Ken Lay
Scandal involving profit sharing acts committed by Enron traders Borget and Mastroeni, involving movement of profits between years to "steadily increase earnings", diverting profits to personal accounts, sham trades, and keeping two sets of books.
What as the Valhalla scandal?
It took 16 years to go from $10 billion of assets to $101 billion of assets, then took this many days to go bankrupt.”
What is 24 days?
A term used to define accounting tricks to make a company's financial results look better than they really are. Typically involves manipulating financial data to inflate a company's revenue and deflate its expenses in order to show higher earnings or profit. Often companies have 2 of these.
What is "Cooking the Books"?
This is the year that Enron entered the year as the 7th largest public company in the US, only to leave this year as the largest company to ever declare bankruptcy in the US history.
What is 2001?
The Vice President of Corporate Development sent an anonymous letter to Ken Lay with concerns that Enron could implode due the many accounting scandals and practices. This person became the Enron whistle blower.
Who is Sherron Watkins?
Scandal involving policy lobbied for by Enron resulting in set electricity prices through auctions, manipulating the export of electricity to create shortages and then importing the electricity back in at higher prices.
What was the California scandal?
How much did Arthur Anderson receive from Enron for both their auditing services and their non-auditing services?
Auditing Services: $25 million
Non-Auditing Services: $27 million
What was Enron's highest stock prices and how low was their lowest stock price?
Highest: $90.75
lowest: Less than $1.00