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Enron Scandal: The Tragic Tale of Greed and Corruption - Prof. Alan Cohen, Study notes of Financial Accounting

An insight into the enron scandal, detailing the role of key figures like cliff baxter, jeff skilling, and ken rice, their questionable business practices, and the tragic consequences of their actions. The document also touches upon the ideology of free markets, the 'pump and dump' scheme, and the impact on employees and analysts.

Typology: Study notes

2011/2012

Uploaded on 01/03/2012

liana-casciani
liana-casciani 🇺🇸

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Enron Notes:
Cliff Baxter committed suicide when Enron went bankrupt.
-Manic Depressive
Trial and questions occur
They bring out the books to see what was really going on
Money was funneling to “Mr. m yass”- My Ass haha
The theory that if you are smart enough than you can do anything
Greed and no matter who you stepped on you got more money
Free markets were turned into an ideology
Jeff Skilling- I am Enron
Re made himself from a nerd to someone who worked out and changed his
personality
Tragic figure.
Huge HUGE risk taker.
He took small group of friends and some customers on wild adventures to make
them feel good as men. These stories became legendary in Enron and fed the whole
“mocho” feel of the place.
Men with Spikes
-Ken Rice
-Sales man
Lou Pie
- Helped build the trading part of the company
- Ran EES business
- ICBM
- Mysterious figure
oWas almost never in his office
- Motivated by money and strippers
oAll charges of the strippers club to the Enron Card
- Didn’t care if he had to “leave a man behind”
- Relentless ruthless man
- Left Enron with 250 million dollars
- Left wife for stripper who had his child
- Just packed up and left one day
oLeaving departments with 1 billion dollars in loss
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Enron Notes: Cliff Baxter committed suicide when Enron went bankrupt. -Manic Depressive Trial and questions occur They bring out the books to see what was really going on Money was funneling to “Mr. m yass”- My Ass haha The theory that if you are smart enough than you can do anything Greed and no matter who you stepped on you got more money Free markets were turned into an ideology Jeff Skilling- I am Enron Re made himself from a nerd to someone who worked out and changed his personality Tragic figure. Huge HUGE risk taker. He took small group of friends and some customers on wild adventures to make them feel good as men. These stories became legendary in Enron and fed the whole “mocho” feel of the place. Men with Spikes -Ken Rice -Sales man Lou Pie

  • Helped build the trading part of the company
  • Ran EES business
  • ICBM
  • Mysterious figure o Was almost never in his office
  • Motivated by money and strippers o All charges of the strippers club to the Enron Card
  • Didn’t care if he had to “leave a man behind”
  • Relentless ruthless man
  • Left Enron with 250 million dollars
  • Left wife for stripper who had his child
  • Just packed up and left one day o Leaving departments with 1 billion dollars in loss

Love me, Love me Enron stocks going up like crazy. Biggest bull market in the history of the world Mounted a campaign to capture stock traders “Pump and dump” Ceo’s would pump up their stock and when they got high they would sell Built power plant in India Failed to see that India couldn’t afford to pay for the power that Enron produced Lost a billion because of this yet they still paid multi million dollars bonuses to executives based on imaginary profits that never arrived Purchased PGE PGE employees then took all their money into their 401k and savings because they saw how much Enron’s stock was increasing and making money. Love for sale Any analyst who didn’t have money in Enron became an enemy of Enron John Olstist- One of the only analyst who was skeptical about Enron Meryl Lynch Fired John, and then were rewarded by Enron with basically 1 billion dollars -Enron got into broadband Someone found something wrong in the financial statements that all the analysts had missed No one who was supposed to say no said no. They just took their money and kept their mouth shut Author and Anderson, received 1 million dollars a week Everyone lied about knowing about the transactions in trials