Enron was an energy company founded in 1985 in Omaha, Nebraska and headquartered in Houston, Texas. At its peak in 2000, Enron employed over 22,000 people and had annual revenue of $101 billion, making it the largest energy trader in the world. However, in late 2001 it was revealed that Enron's reported financial condition was sustained substantially by an institutionalized, systematic, and creatively planned accounting fraud, known as the Enron scandal. This led to its bankruptcy on December 2, 2001 and dissolution.

2. Presentation By:

3.  FormerType: PublicCompany
 Industry: Energy
Founded: Omaha,Nebraska(1985)
 Founder(s): KennethLay
 Defunct December2,2001
 Headquarters Houston,UnitedStates
 KeyPeople KennethLay,Founder,chairmanAnd
CEO
JeffreySkilling,formerPresident,CEOAnd
COOAndAndrewFastow,FormerCFO
 Revenue $101Billion(2000)
 Employees 22,000(2000) {Approx.}

4.  One Of The World's Leading Supplier Of
Electricity, Natural Gas, Communications, And
Pulp And Paper .
Development Of Power Plants ,Pipelines .
CEO , CFO And Chairman Transformed Enron
Dramatic Growth
Fortune Named Enron "America's Most
Innovative Company" For Six Consecutive Years

5.  1985 : Houston Natural Gas
Merges With Omaha Based
Internorth Forming Enron
Corporation.
 2000 : Annual Revenue Touched
$100 Billion And Acknowledged
As The Sixth Largest Energy
Company .
 August 2001: The CEO Resigns
And Lay Takes Over As The New
CEO

7.  Bankruptcy Filing Came After Series Of
Revelations' That Giant Energy Trader
Had Been Using Special Purpose Entities
 Company’s CFO In 2001 Stated That
Enron Has Established SPEs To Move
Assets And Debt Off Its Balance Sheet
And To Increase Cash Flow.
According To John, a University Law
Professor ,Once SPE Is Formed By Enron,
It Will Then Borrow Debt From Banks
And Enron Would Guarantee That Debt .

8.  In reality SPE founded by
ENRON were used as a means of
storage,transportation,or other
energy related operations.
 The cash flow of ENRON from its
operations declined from positive
127 million dollar in 2000 to a
negative of 753 million dollar in
2001.
 ENRON finally filed for
bankruptcy on December 2,2002
after Dynergy terminated the deal
when STANDARD AND
POORS downgraded ENRON^S
debt below investment grade.

9.  In JUNE 2001,ENRON Vice
President Sherron Watkins was
given the task of finding some
assets to sell off but it was very
difficult for her.
 Watkins prepared a Memo
regarding the various problems and
placed it into the box but this Memo
was not taken into consideration.
 On August 22,Watkins handed CEO
Lay a seven page letter and told him
that ENRON would implode in a
wave of accounting scandals” if no
further action was taken.

10.  Against Watkins letter Lay, the CEO
,arranged to have a ENRON’S Law Firm
Vinson and Elkins that looked after all
questionable deals.
 Watkins continued to do her work and
sold stock of 30000 dollar in
August,2001 and some in late
September.
 In February 2002,she revealed the
various facts regarding ENRON
partnerships and finally resigned in
November. But Watkins Revealed iall the
facts only after ENRON filed for
bankruptcy.

11.  The Board
 The Profits
 Legislation
 Conflict of Interest

13.  Became the
Chairman And Ceo
in Feb,1986
He Drew Down His
$4 Million enron
credit line repeatedly
and then repaid the
company with the
enron shares.

14. Fastow`s Brighter Side
 Fastow joined Enron in 1990 And took it to soaring
hieghts.
 His expertise awarded him CFO excellence award for
capital structure management.
 He used to get support from enron `s president And
COO jeffrey k skilling .
Fastow`s Darker Side
 Fastow was accused of being mastermind behind the
Enron`s scandal.

15.  Fastow was accused of being
mastermind behind the Enron`s
scandal.
 He surrendered $30 million dollars in
cash and also accepted 10 years .
 Lea Fastow , was al so a culprit .

16.  Held equally
responsible for “
the enron scandal ”
Involvement In :
 Government
deregulations
 Securities Fraud

18.  Andersen Partner Complained About Fastow`s Plan To
Contribute His Own Money Into Partnerships , Saying
`Why Would Any Director In His Or Her Right Mind
Ever Approve Such A Scheme?” `
 Andersen Thought That “The Whole Thing Was A Bad
Idea” But Is Convinced That This Is Such A Win- Win
Thing, That Everyone Will Buy In.”
 The U.S. Government Asserted That, After Investigation
Of Enron Began, Following Its Bankruptcy , Andersen
Destroyed/Shredded Thousands Of Documents In
Houston, Portland, London And Possibly Other
Locations
 Andersen Was Convicted Of Felony Obstruction Of
Justice And Ceased Auditing Public Companies In 2002;
The Conviction Was Overturned.

19.  Andersen Also Provided Consulting Services, Helping Set
Up And Opine On The Validity Of Enron`s Spe`s Under
Accounting Rules .
 Andersen Received $58 Million In Fees From Enron In
2000 (Less Than Half Of Which Was From Auditing
Services) And $50-55 Million In 2001 .
 Documents Produced For Congressional Investigators
Show That Partners In Andersen`s Houston Office
Debated Whether To Force Disclosure Of Billions In Off-
balance Sheet Debt, But Decided Against It, Citing
Potential Growth Of Fees From Enron To $100 Million
Per Year .

20. Watkins allegations of
accounting fraud.
Professional misconduct by
the Charges by the texas bar.
Legitimacy of EnroN`S
business practices.

21.  merrill lynch faced scrutiny by
federal prosecutors and the sec
for its role in enron`s 199o sale of
nigerian barges .
 overstated statement about
guaranteed rate of return .
 false statements and misleading
information .

22.  October 2001 : Securities And
Exchange Act Launches A Formal
Investigation Into Its “Related Party
Transactions”
 November 8,2001 : Enron Restates Its
Earning For First Three Quarters Of
2001
 December 2, 2001 : Enron Files For
Protection From Creditors In New York
Bankruptcy Court
 December 3, 2001 : Lays Off Five
Thousand Employees

23. In 2002
 January 9 : The Justice
Department Announces That
It Is Pursuing A Criminal
Investigation Of Enron
 January 24 : The Hearings On
Enron Begin
 February 4 : Improper
Financial Transactions And
Self Dealing
 October 31 : The CFO ,
Fastow Is Indicted Of Being
The Mastermind Behind The
Scandal .

24. In 2003
 February 3 : The Creditors Sue
Lay And His Wife To Recover$70
Million In Transfers
 July 11 : It Settled Its Allegations
Of SEC Paying $300 Million .
 January 14, 2004 : Fastow
Agrees To Serve 10 Years In
Prison .
 July 8 : Lay Surrenders After
Being Indicted .

25. INVESTOR LOSSES
COLLAPSE OF
ELECTRICITY TRADING MARKET
CROSS COUNTRY
ENERGY CORPORATION.

26. LIQIUDATION OF ASSETS.
CANCELATION Of
OuTSTANDING AND
PREFERRED STOCK.

27.  January 30 , 2006 : Lay And
Skilling Trial Begins
 May 25 , 2006 : Lay And Skilling
Are Convicted Of Conspircy To
Commit Securities And Wire
Fraud . Lay Convicted In A
Separate Bank Case .
 July 5 : Lay Dies Of Heart Attack ,
Erasing His Conviction As A
Person Who Dies Before An
Appeal Is Not Considered
Convicted .