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Enrron Scandal Cases

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Farsum Chaudhary Professor Pearl Unethical Issue- ENRON The ENRON Scandal is known to be one of the most notorious scandal cases within American history. What ENRON consisted of was a group of company executives involved in White Collar Crimes, which were revealed October 2001. White Collar Crimes are defined financially-based criminal activity typically taking place in a setting in which its participants hold advanced knowledge in regards to employment that is considered to be prestigious. Term regulation by the government involves the government keeping a check on the companies and regulating them by keeping a watch on them. The ENRON executives applied for and were granted government deregulation, which meant they were less restricted and less liable to state regulation.As a result of this declaration, ENRON executives were allowed to maintain control over the earnings reports that were to be released …show more content…

They exploited investors and stockholders out of their money through the fake image they put up of the company which caused investors to keep investing and new investors to start investing. The people that were mainly accountable for this fraud taking place were ENRON founder, Kenneth Lay and the CEO Jeffrey Skilling, who were convicted on May 25 for the conspiracy that took place. The fraud can be defined as white collar criminal activity that involved unethical and unlawful actions taken to attain money and funding of the investors and stockholders. While the executives were using the money for their personal use, the company was reaching bankruptcy. Due to the fraud and unethical behavior of the executives, the company went bankrupt. Investors lost over $70 billion. This whole fraud consisted of the misappropriation of pension funds, investments, stock options, and savings

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