Question

What happen after the Enron Corporation scandal, did the company close or was fined. Did people involved go to jail?

Answer 1

Enron's chief financial offer, Andrew Fastow, was the alleged mastermind behind camouflaging an estimated one billion dollars of debt that resulted to the Enron's bankruptcy. To misrepresent its true financial condition, he took the role by involving special purpose entities and unconsolidated partnerships. Arthur Andersen was Enron’s auditor and was holding the responsibility for accuracy of financial statements and internal bookkeeping of Enron, however he concealed the losses and not provide accurate financial picture to the investors. By concealing the debts and presenting inaccurate financial condition he hide Enron's true financial standing. In the year 2000, Enron financially fell short and resulted to the long awaited demise of bankruptcy.

Eventually Enron had filed for bankruptcy by December 2, 2001. In August 2000 it's shares were worth $90.75 however declined to $0.67 in January 2002. Kenneth Lay was the Enron's chairman; and following the investigation he was sentenced to 45 years in jail on numerous account of fraud however died on 5 July 2006 before getting to prison. Jeffrey Skilling was the chief executive officer; and was sentenced to 24 years and 4 months in prison however a deal between the U.S. Department of Justice and he reduced it by 10 years