Enron: The Rise, Scandal, & Impact

2. THE GREAT RISE • 1979 Established as the largest energy holding company of its time • 1985 it acquired the Houston Natural Gas company and began international business deals • 1990’s Enron was a name known from coast to coast

3. BUSSINESS ENDEAVORS • 38 Power Plants • More than 25 Business Entities • Sold More than 500 Commodities Worldwide • EnronOnline, the Greatest Innovation in the Energy Industry of the Time

4. MILLION $ DEALS

5. AT THEIR BEST • More than 22,000 employees and $111 billion in revenue • Fortune’s “100 Best Companies to Work for in America” in 2000 • “America’s Most Innovative Company six years in a row

6. SUSPISION • “It’s the only company that does not release a balance sheet along with an earnings statement.” • “It’s really hard for analysts to determine where Enron is making money in a given quarter, and where they are losing money.” • “There is an appearance that you [Enron] are hiding something.” • “Enron stock is trading under a cloud.”

7. Large # of Overseas Businesses Extra Tax Privileges Complete Anonymity Free Movement of Money Mark to Market Accounting “Invisible Profits” INVESTIGATION REAVEALS

8. GUILTY! • Overstating the Earning Statements • Increasing the Price of Stock Shares • Hiding Losses • Embezzlement • Insider Trading

9. THE GREAT COLLAPSE • $0.61 Per Stock Share • More than 90% Retirement Lost • Bankruptcy • Criminal Charges • Biggest Cooperate Scandal of the Time

10. VERDICT’S IN • Jeffery Skilling sentenced to 24 years and 4 months • Kenneth Lay 45 years in prison and repayment of more than $90 million (Died) • Paula Rieker repay $499,333 • Mrs. Linda Lay found guilty • Mr. Roberts was found guilty of impersonating a member of the Senate staff • Author Andersen forfeit his license and more than 100 lawsuits

11. GOT THE POWER • Political advantage; generous financial contributions to select political parties • Legislations were passed to deregulate the sale of gas and electricity; quadrupled its profits • Energy crisis endured by California in 2000; accounting for 38, Stage 3 rolling blackouts

12. ENRON TODAY • Forced to change its legal name to “Enron Creditors Recovery Corporation,” Doing Business As Enron Corporation • Now asset-less company exists solely for tribute and retribution to those whose lives it destroyed • Directly influenced the Sarbanes-Oxley Act • Considered to be the greatest legislation since the New Deal enacted in the 1930’s by President Roosevelt

13. Herbert S. Winokur, Jr., Chairman of the Enron Finance Committee

14. WORKS CITED • BusinessWeek.com (2008). The Enron Scandal. Retrieved April 4, 2008 from http://www.businessweek.com/magazine/toc/02_04/B3767 enron.htm. • Coomer, B. (2002). The Fall of Enron. Retrieved on April 4, 2008 from http://www.chron.com/news/specials/enron/. • Gibney, A. (2005). The Smartest Guys in The Room. EnronMovie.com. Retrieved April 4,2008 from http://www.pbs.org/independentlens/enron/. • Time.com (2002). Behind the Enron Scandal. • WashingtonPost.com (2005). In the News. Retrieved April 4, 2007 from http://www.washingtonpost.com/wp-dyn/business/specials/energy/enron/