Enron

From dKosopedia

Categories: Corporations | Energy

Enron was once one of the largest companies in the United States, even though its name was not widely known. It transformed the staid energy and pipeline business with schemes to trade commodities in the energy market combined with accounting tricks that made it seem far more profitable than it really was, until finally, the accounting schemes collapsed. Arthur Anderson one of the largest accounting firms in the world, was forced to shut down its entire business with thousands of partners when a criminal conviction related to the Enron Scandal ended its ability to serve as an auditing firm.

Enron was implicated among other things, with manipulatation of the electricity markets in the California that resulted in windfall profits earned from high electrical prices created by artificial shortages in supply.

Enron has now gone bankrupt and has largely been liquidated. Every stage of its rise and fall, right through to its bankruptcy proceedings, have become synonmous with abusive corporate practices. Several of its senior executives, including its CEO, are facing or have already been convicted pursuant to criminal prosecutions.