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Running Head: FRAUD AT ENRON1Fraud at EnronName:Institutional Affiliation:FRAUD AT ENRON2Fraud at EnronIntroductionIn 1985, two companies merged to bring forth Enron Corporation that became oneof the leading energy companies in America at the time. The company was under the leadershipof Kenneth Lay, and the growth was tremendous until the disaster happening got noticed and thingsstarted crumbling down over the years false accounting reports, lousy management, and unethicalpractices were the order of the day (Dembinski et al., 2005). The same dishonest practices led tothe announcing of the company that it was bankrupt. This announcement was the most significantlet-down at the time that affected the money and investments of the many stakeholders. The manypeople that lost their jobs were more than four thousand in counting. The number of families andpeople affected both, directly and indirectly, was devastating.This paper is focusing on the problem at Enron; where it started, how it progressedwithout being noticed, the finding out and the actions taking to resolve the extensive damagecaused by the people in charge. Fraud was the under-laying issue that was causing all thehappenings in the company that the investors and stakeholders did not know. Without the noticeof the stock exchange to look into the books of the Enron Company, more investors and partnerswould have lost billions and billions of investments in the company. At Enron, it was not a new ...


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