Kenneth Lay was the CEO of Enron which collapsed in 2001 due to an accounting fraud scandal. Enron used complex accounting techniques like mark-to-market accounting and special purpose entities to hide debts and inflate profits, misleading investors. When details emerged, Enron filed for bankruptcy. The Sarbanes-Oxley Act was passed in response, strengthening regulations for public companies. Key executives like Lay, Skilling, and Fastow were convicted for their roles, but others like Lou Pai who left with $280 million were not charged. The scandal revealed flaws in self-regulation of businesses and lack of oversight.