Definition and Summary of the Enron Scandal

Summary and Definition: The Enron Scandal surfaced in October 2001 when it was revealed
that America's seventh largest company was involved in corporate corruption and accounting
fraud. The scandal surrounding the Enron energy company included political implications due to
Enron's close links with the White House, the Deregulation of ENRON allowing the corporation
to operate largely free from US government scrutiny, misrepresentation in earnings reports, a
fraudulent 'energy crisis' and embezzlement undertaken by ENRON Executives. The Enron
scandal eventually led to the bankruptcy of the corporation together with and the dissolution of
the auditing company Arthur Andersen. ENRON shareholders lost $74 billion leading up to its
bankruptcy, and its employees lost their jobs and billions in pension benefits. Enron CEO Jeff
Skilling was sentenced to 24 years, former CEO Kenneth Lay died before serving time.

Enron Scandal Facts for kids

The following fact sheet contains interesting facts and information on Enron Scandal for kids.

Enron Scandal Facts for kids

Enron Scandal Facts - 1: Enron was founded in July 1985 with the merger of Houston Natural
Gas and Omaha-based InterNorth. The chairman and chief executive was Kenneth Lay (April
15, 1942 – July 5, 2006), an energy economist who had held both academic and government
positions throughout his career.

Enron Scandal Facts - 2: In the early 1970's Ken Lay worked as a federal energy regulator and
became undersecretary for the Department of the Interior. He returned to the business world as
an executive at Florida Gas Transmission and then CEO of of Houston Natural Gas which was
was acquired by InterNorth Inc. in 1985. After the merger the company was renamed as
ENRON.

Enron Scandal Facts - 3: In the

process of the merger Enron acquired huge debts and began to look for innovative business
strategies to generate profits and cash flow. Ken Lay hired McKinsey & Co. to assist in
developing Enron’s new business strategy who assigned a young consultant called Jeffrey
Skilling to the project.

Enron Scandal Facts - 4: Key Players: Jeff Skilling joined Enron in 1990 and quickly rose in the
ranks of the corporation. On February 12, 2001, Jeff Skilling was named CEO of Enron and Ken
Lay adopted the position of Chairman of the corporation.

Enron Scandal Facts - 5: Key Players: Andrew Fastow became the chief financial officer of
Enron Corporation in 1998 and also managed the companies partnerships. Andrew Fastow
testified in exchange for leniency when the Enron scandal erupted

Enron Scandal Facts - 6: Key Players: Sherron Watkins would feature in the Enron Scandal as
a whistleblower. She began her career in 1982 at Arthur Andersen as an auditor accountant and
joined Enron in 1993. Sherron Watkins became Vice President of Corporate Development in
2001.

Enron Scandal Facts - 7: Political implications: Ken Lay was a close, personal friend of the Bush
family and Enron provided millions of dollars to finance the Bush 2000 election campaign.
Enron Scandal Facts - 8: Political implications: Enron executives met Vice President Dick
Cheney and his energy task force on several occasions to discuss the Bush administration's
energy plan.

Enron Scandal Facts - 9: When Enron was formed, electricity and natural gas were produced,
transmitted and sold by state-regulated monopolies. The deregulation of the energy markets
allowed companies to operate largely free from US government scrutiny and Enron began
trading energy online, like stocks and bonds, placing bets on future prices.

Enron Scandal Facts - 10: The company then poured billions of dollars into other trading
ventures. These were converted into contracts, called derivatives, that were sold to investors. It
was Jeff Skilling who came up with the idea of the energy derivative. EnronOnline was launched
in November 1999 as the first global commodity trading web site.

Enron Scandal Facts - 11: The prices of Enron stock grew and Fortune Magazine named the
corporation as "America's Most Innovative Company" for six years in a row between 1996 and
2001.

Enron Scandal Facts - 12: One of the "Big Five" accounting firms, Arthur Andersen LLP,
provided auditing, tax, and consulting services to the Enron corporation.

Enron Scandal Facts - 13: However huge debts inside the corporation were beginning to grow
but executives were able to hide the debts by setting up partnerships in which the losses could
be buried and generating imaginary revenues

Enron Scandal Facts - 14: The corporation kept their huge debts off the balance sheets by
misrepresentation. By misrepresenting earnings investors were completely oblivious to the true
financial condition of ENRON.

Enron Scandal Facts - 15: "Creative accounting" - Assets and profits were inflated, and in some
cases, completely fraudulent and nonexistent.

Enron Scandal Facts - 16: The executives used embezzled funds from investments and
reported fraudulent earnings to their investors. This resulted in increasing investments from
current stockholders and attracting new investors eager to make money from the apparent
financial gains enjoyed by the corporation.

Enron Scandal Facts - 17: Fraudulent 'energy crisis': Enron created artificial power shortages in
California, helping to trigger an energy crisis in 2000 and 2001. The corporation was able to
manipulate power supplies and charge excessive prices.

Enron Scandal Facts - 18: Jeff Skilling famously joked about the California energy crisis at a
meeting of Enron employees by asking, "What is the difference between California and the
Titanic? At least when the Titanic went down, the lights were on".

Enron Scandal Facts - 19: On the surface the corporation was a massive success, the seventh
largest company in the United States. On December 31, 2000, Enron's stock was priced at
$83.13 and its market capitalization exceeded $60 billion.
Enron Scandal Facts - 20: In February 2001 Ken Lay announced his retirement, retaining the
position of Chairman, and named Jeff Skilling president and CEO of Enron.

Continued

Enron Scandal Facts for kids

Facts about the Enron Scandal for kids

The following fact sheet continues with facts about Enron Scandal for kids.

Enron Scandal Facts for kids

Enron Scandal Facts - 21: After just a few short months as CEO, Jeff Skilling unexpectedly
resigned on August 14 2001. He cited 'personal reasons' as his reason for resignation and he
subsequently sold large amounts of his shares in the corporation. Skilling's sudden resignation
prompted Wall Street to question the health of the company and stock market prices began to
drop.

Enron Scandal Facts - 22: Enron executives, including Ken Lay, began selling large amounts of
stock as prices continued to drop. The prices of Enron stock would eventually fall from a high of
$83.00 per share to less than a dollar.

Enron Scandal Facts - 23: Chairman Ken Lay returned as CEO and on August 16, 2001 called
an executive's meeting to address Jeff Skilling's resignation.

Enron Scandal Facts - 24: On August 22, 2001, in response to questions raised at the meeting
Sherron Watkins, the newly appointed Vice President of Corporate Development, alerted Ken
Lay of accounting irregularities in financial reports. Her action triggered the chain of events that
led to the collapse of Enron and the ensuing scandal.

Enron Scandal Facts - 25: Ken Lay assured Sherron Watkins that he would address her
concerns and selected law firm Vinson & Elkins (V&E), assisted by Arthur Andersen LLP, to
review the situation. Neither companies were impartial. V&E had been involved in Enron’s
dealings and Arthur Andersen LLP was the company's auditors.

Enron Scandal Facts - 26: V&E concluded the review did not warrant a further widespread
investigation by independent counsel or auditors.

Enron Scandal Facts - 27: In October 2001 the U.S. Securities and Exchange Commission
(SEC) opened a formal investigation into transactions among the Enron Corporation and
partnerships headed by Andrew Fastow. A special committee was appointed to examine the
financial transactions of the corporation

Enron Scandal Facts - 28: Enron Corporation disclosed that its shareholders' equity had
dropped over one billion dollars due of a deal with partnerships led by Andrew Fastow. The
write-down was not apparent in Enron's quarterly earnings report, suggesting that Enron were
hiding losses. On October 24, 2001 Andrew Fastow was sacked
Enron Scandal Facts - 29: On November 8, 2001 Enron admitted that, dating back to 1997, it
had overstated profits by $600m. The next day Enron Corporation agreed to its acquisition by
the Dynegy energy company for $9bn.

Enron Scandal Facts - 30: In less than two weeks the Dynegy offer was rescinded when Enron's
credit rating sank to high-risk, junk-bond status. (Note: In 2002 Dynegy nearly went bankrupt
and several executives were eventually convicted of financial fraud and mismanagement)

Enron Scandal Facts - 31: On November 29, 2001 the investigation by the U.S. Securities and
Exchange Commission (SEC) is extended to cover Arthur Andersen LLP.

Enron Scandal Facts - 32: On December 2, 2001 Enron Corporation filed for bankruptcy.

Enron Scandal Facts - 33: On January 9, 2002 the Justice Department confirmed it had begun a
criminal investigation of Enron.

Enron Scandal Facts - 34: January 9, 2002 the White House discloses that Ken Lay had sought
help from two US Cabinet members, US treasury secretary Paul O'Neill and commerce
secretary Don Evans, shortly before the company collapsed, although neither offered aid.

Enron Scandal Facts - 35: On the same day, January 9, 2002, Ken Lay resigned as chairman
and CEO and the company's auditor, Arthur Andersen LLP, admitted it had destroyed tons of
Enron documents. .

Enron Scandal Facts - 36: Cliff Baxter, former head of Enron's trading unit and later vice
president before his resignation in May 2001, had agreed to testify before Congressional
committees in February 2002. On January 25, 2002 Cliff Baxter was found dead of a gunshot
wound. The coroner subsequently returns a suicide verdict.

Enron Scandal Facts - 37: On June 15, 2002, Arthur Andersen LLP was convicted of obstruction
of justice for shredding documents related to its audit of Enron. Although the conviction was
later reversed by the Supreme Court, the impact of the scandal virtually destroyed the firm.

Enron Scandal Facts - 38: On October 31, 2002, Andrew Fastow was indicted by a federal
grand jury in Houston, Texas on 78 counts including fraud, money laundering, and conspiracy.
He agreed to cooperate with the prosecution former Enron employees. On September 26, 2006
Andrew Fastow was sentenced to six years, followed by two years of probation.

Enron Scandal Facts - 39: On July 7, 2004, Ken Lay was indicted for his role in Enron's collapse
and scandal. He was charged with 11 counts of securities fraud, wire fraud, and making false
and misleading statements.

Enron Scandal Facts - 40: The trial of Jeff Skilling began on January 30, 2006. He was indicted
on 35 counts of fraud, insider trading, and other crimes related to the Enron scandal. Skilling
agreed to become an informant regarding former Enron executives in order to receive a reduced
sentence.
Enron Scandal Facts - 41: On May 25, 2006, Ken Lay was found guilty by a jury on all six
counts of conspiracy and fraud. Ken Lay died of a heart attack on July 5, 2006, while
vacationing in Colorado.

Enron Scandal Facts - 42: At the time of the scandal and its collapse, Enron was the biggest
corporate bankruptcy ever to hit the financial world but other larger bankruptcies soon emerged
surpassing Enron as the largest corporate bankruptcy.

Enron Scandal Facts - 43: Congress passed the Sarbanes-Oxley Act of 2002 in response to the
Enron scandal. The purpose of the Sarbanes-Oxley Act is "...to protect the interests of investors
and further the public interest in the preparation of informative, accurate, and independent audit
reports”.

Enron Scandal Facts - 44: Corporate scandals have plagued America. The scandals that
followed including those of WorldCom Scandal (2002), Tyco Scandal (2002, Healthsouth
scandal (2003), Freddie Mac scandal (2003), American Insurance Group scandal (2005),
Lehman Brothers (2008), Bernie Madoff scandal (2008) and the Washington Mutual (2008).

Enron Scandal Facts for kids

Enron Scandal - President

George W Bush Video
The article on the Enron Scandal provides detailed facts and a summary of one of the important
events during his presidential term in office. The following George W Bush video will give you
additional important facts and dates about the political events experienced by the 43rd
American President whose presidency spanned from January 20, 2001 to January 20, 2009.

Enron Scandal for kids: Ken Lay and Jeff Stilling

● Interesting Facts about Enron Scandal for kids and schools

● Summary of the Enron Scandal in US history
● Enron Scandal timeline of important, key events
● George W Bush from January 20, 2001 to January 20, 2009
● Fast, fun facts about the Scandal involving Ken Lay and Jeff Stilling
● Foreign & Domestic policies of President George W Bush
● George W Bush Presidency and Enron Scandal for schools, homework, kids and children
Andersen Tax was founded in 2002 by 23 former Arthur Andersen partners under the name
WTAS. On September 2, 2014 WTAS announced it had acquired the rights to the iconic
brand name Andersen and would rename itself Andersen Tax. Today, Andersen Tax is one
of the largest independent tax firms in the world. Read on to learn more about Andersen
Tax in the past, present and future.

2002

On July 9, 2002, in the wake of Arthur Andersen's demise, Andersen announced that
HSBC purchased a portion of Andersen's tax practice through a new subsidiary,
Wealth & Tax Advisory Services, Inc. (WTAS). The new private client services
group, led by Mark Vorsatz and joined by Joe Toce and 21 other former Andersen
partners, would strive to redefine the professional services industry. WTAS is
formed.

WTAS pursues a low leverage business model putting clients at the center.
Managing Directors— “Partners” as they regard each other—would “roll up their
sleeves” and work directly with their clients. The Partner’s devotion of time and
attention to each client would lead to creative and unique solutions, which would
ultimately result in the best client service possible.

2003

The firm successfully transitions 92% of its clients to the newly-formed business, adds
seven new Managing Directors and increases its client base by 20% in the first year. The
firm also grows its practitioner headcount by over 10% in a recessionary business climate.

WTAS acquires the rights to Tax Economics of Charitable Giving publication, recognized as
the most authoritative treatment of its kind, and begins plans to publish a new updated
version. The authors of this book, Joseph P. Toce, Jr., Byrle M. Abbin, William M. Pace,
and Mark L. Vorsatz, are Managing Directors of WTAS.

2004

WTAS continues to establish a benchmark for quality against which all other firms will be
measured.

In its second year of business, WTAS implements a client newsletter, establishes a

mechanism for internal technical releases, creates an international newsletter and publishes
the firm’s first edition of Tax Economics of Charitable Giving.

The firm adds six more Managing Directors (MDs) and now has 38 MDs firmwide. WTAS
continues to add new clients, growing nearly 27%. This growth is not necessarily an
objective, but rather a byproduct of the outstanding client service delivered by the best and
brightest professionals in the industry.
2005

WTAS adds 16 Managing Directors as growth accelerates. Revenues are up almost 27%
this year and the client base has doubled since inception. The firm expands its services to
better serve clients. New service lines now include valuation, investment consulting
services, state and local tax, corporate taxation, real estate services, personal accounting
solutions and international tax capabilities.

WTAS opens offices in the Philadelphia and Baltimore markets. The firm will continue to
systematically build out its platform.

2006

WTAS expands to Chicago, Palo Alto and Seattle. The firm now has 11 locations. This
growth is the result of a very simple concept upon which the firm was founded: providing
best in-class service. The firm’s revenue growth reaches 46% for the year. WTAS is now
the 11th largest tax practice in the nation, according to Accounting Today.

This year marks WTAS’ fifth anniversary. People have joined WTAS from a variety of firms,
including all of the Big Four, and have melded and formed a culture that takes the very best
from each of its reference points. The firm shares a common vision for what it wants to be
and what it wants to achieve. In less than five years, the firm tripled the size of its client
base. It’s time for a change.

2007

On December 31, 2007, in a mutual decision, HSBC signs an agreement to sell Wealth &
Tax Advisory Services (WTAS) to participating WTAS Managing Directors in a management
buy-out. With the darkening clouds of the global economic recession as a backdrop, the
MDs now control their business—WTAS LLC—and welcome the challenges ahead,
confident their “clients first” culture will weather the storm.

2008

WTAS relocates to new offices in San Francisco, Seattle, and Greenwich, CT and opens an
office in Madison, NJ. Although the bottom falls out of the economy in the latter half of the
year, WTAS adds 15 new Managing Directors (MDs) and its total MD complement is now
74. The new MDs expand WTAS’ service capabilities in the areas of state and local
taxation, valuation, cost segregation, private equity, corporations and tax controversy. As a
direct result of the firm’s dedication to “clients first,” revenue is growing when most other
professional services firms are experiencing declining revenues.

2009

Continuing to build on its past success in spite of the difficult economy, WTAS is successful
in making the transition from a firm primarily focused on private client services to one that is
a full-service tax business and offers competencies in corporate taxation, state and local
tax, international tax services, alternative investment funds, valuation, compensation and
benefits, and many related subspecialties.

2010

Over the last eight years, WTAS grew its client base fourfold. The firm’s Managing Director
complement has grown to 86 with the addition of 13 more. By quantitative measures, the
firm has consistently grown by three to four times in every category over an eight year
period.

Susan Swartz, Office Managing Director in Seattle, starts the Women @ WTAS initiative to
proactively assist in the retention and success of women in our firm.

2011

WTAS has succeeded at putting clients at the center of the firm’s operating model and
continues to expand capabilities to meet client’s needs. The firm has evolved from serving
primarily the personal needs of high net worth private clients to a point where about 55% of
revenues come from private clients, while 45% come from commercial entities.

In the three years since the MDs of WTAS left HSBC, the firm accomplished a tremendous
amount despite the worst economic environment since the Depression Era. WTAS’ aim of
providing the best client service possible has shown its value more than ever. The success
of the firm is linked to the success of its clients.

Preparing for the success of its clients, WTAS relocates and expands its offices in New
York City, Los Angeles and Philadelphia.

2012

10 Years

2012 marks a special anniversary for WTAS. July 9, 2012 marks 10 years as a firm. WTAS
believes that service, experience and a genuine concern for our clients are prerequisites for
developing long-lasting relationships.

By almost any measure, WTAS has quadrupled in size in the 10 short years the firm has
been in existence. WTAS is now one of the largest independent tax advisory firms in the
United States, with over 500 people in 14 offices. In the markets we serve, we have the
scale and experience of a multi-national accounting firm with the visibility and attentiveness
of a local boutique firm.

CEO Mark Vorsatz announces new initiatives to hire military service veterans and involve
WTAS personnel even more in volunteer service in their communities. Our Chicago office
prepares to move to a new site with twice the space as its present location.

This firm was founded with a dream to be different and to change an industry standard.
2013

2013 is full of new milestones for WTAS including the addition of offices in Dallas
and Houston, and the establishment of WTAS Global.

WTAS welcomes new Managing Directors Elliott Bossin, Mary Duffy, Kurt
Heinrichson, Ellen MacNeil, and John Niemann to the firm. WTAS is now located in 16
major cities in the United States and has an international presence in Europe through
WTAS Global. WTAS Global was established in June 2013 by member firms WTAS LLC
and a tax only firm based in Switzerland. In November 2013, STC Partners, a business law
firm in Paris, joined WTAS Global.

2014

WTAS continues to grow and expand internationally with the establishment of various
offices throughout Europe and Russia. In March, WTAS Global announces a new office
in Geneva, Switzerland. In April, Taxperience Group, a tax advisory and consultancy firm
with locations in Amsterdam, Rotterdam, ‘s-Hertogenbosch, Netherlands and Moscow,
Russia, joins WTAS Global. In September, Studio Associato De Vecchi, a third generation
firm that provides tax, legal, accounting and financial advisory services with locations in
Milan and Brescia, Italy, joins WTAS Global.

WTAS welcomes new Managing Directors David Kapnick, Jim Hogan, Marc Lim and Pat
Padon to the firm. In addition, WTAS welcomes two Managing Directors to its 17th U.S.
location in Long Island, New York. Peter Crocco and Wayne Trumbull join WTAS as
Managing Directors from True Partners Consulting. WTAS Global welcomes new Partners
Agnès Aviges and Sébastien Vialar at STC Partners, based in Paris.

A name from the past, a firm for the future: On September 2, WTAS announced it had
acquired the rights to the iconic brand name Andersen and would rename itself Andersen
Tax. Like WTAS, Andersen Tax is an independent global tax firm with no audit practice that
could impair the credibility or integrity of the services it provides. It is completely owned by
its partners, most who previously worked at Arthur Andersen or a Big 4 accounting firm.

On September 15, Andersen Tax announced a new presence in Lugano, Switzerland

through the addition of MDR Advisory Group, a firm that provides national, international and
corporate tax work to individuals and businesses in Switzerland and Europe.

On October 8, Andersen Tax announced expansion in Italy through the addition of two firms
in Rome and Venice that will merge together with Studio De Vecchi to form a new entity
called Noda Studio.

On December 30, Andersen Tax announced a new presence in Germany through the addition
of Alegis Gmbh Steuerberatungsgesellschaft in Düsseldorf as well as a satellite in Luxembourg
through Alegis S.a.r.l. These locations solidify the growing presence of the Andersen family in Central
Europe.
In fall 2014, Andersen Tax welcomes new Managing Directors Chad Thiel and Cornelia
Schnyder and promotes its first class of Managing Directors.

Andersen Global now has more than 32 international locations with over 300 professionals
in Europe and over 1000 professionals worldwide. Andersen Tax and Andersen Global
added a total of 14 locations in 2014.

2015

Andersen Tax experienced a steady growth in 2014, and is excited to continue this growth
in 2015 through our international association, Andersen Global.

In January, the Chicago office of Andersen Tax welcomes new Managing Director Bob
McDonald, and adds Private Accounting Solutions Group, Financial Controllers Inc. In
February, Andersen Tax welcomes new Managing Director, Brad McKinney to its New York
office. In addition, Andersen Tax opens a new location in Orange County, CA. In March,
Andersen Global welcomes new Partner Stéphanie Roy and Of Counsel, Mehdi Ouchallal,
based in Paris. In May, the US National Tax Office of Andersen Tax welcomes new
Transfer Pricing Managing Director, Kevin Kiyan. In June, the firm’s US National Tax Office
welcomed another addition, Managing Director, Jeff Malo.

On June 15, 2015, Andersen Global announced its expansion into Latin America with the
addition of well-respected firms NOVINT, Capin, Ibañez & Asociados and Montes,
Hernández, López y Del Castillo, accounting and law firms, respectively, in Mexico. These
firms will be the first in the Andersen Global family to adopt the name. Andersen Tax &
Legal will have locations in Mexico City, Guadalajara and Monterrey and expects to add
several additional locations before the end of the year.

On June 22, 2015, Andersen Global announced a new presence in Guatemala through the
addition of Trust Consulting in Guatemala City. Trust Consulting is the second member firm
to adopt the Andersen Tax name and to join Andersen Global in Latin America in 2015.

On June 30, 2015, Andersen Global announced a new presence in Spain with the addition
of Global Abogados, a tax and law firm with offices in Barcelona and Madrid.

On August 11, 2015, Andersen Global is proud to announce a new presence in São Paulo
and Campinas, Brazil with the addition of INOVV Consultores Associados. After joining the
Andersen Family, INOVV will be known as Andersen Tax in Brazil. INOVV is the third
member firm to adopt the name and the first to join Andersen Global in South America.

In August, Andersen Tax welcomes new Managing Director Frank Hobmeier.

In September, Andersen Tax announces the promotion of eight Managing Directors in local
offices. The promotes are Tim Wylie, Kellie Neuhaus, Cathy Elchinoff, Hai Tang, Sean
Bruen, Rose DeLuna-Frede, Scott Deichmann and David Bollis.

In December, Andersen Global establishes a new presence in Santiago, Chile with the
addition of Landa Consultores. Landa Consultores will adopt the name Andersen Tax –
Landa, making it the fourth member firm to adopt the Andersen Tax name and the second
in South America to join Andersen Global.

Andersen Global now has 45 international locations with over 1,200 professionals
worldwide.

2016

Last year, marked by continual growth and international expansion, saw the first firms in the
Andersen Global family to adopt the name Andersen Tax. Looking forward the firm expects
to add several additional locations before the end of the year.

In January, Andersen Tax announces the promotion of Jason Graham to Office Managing
Director in Houston, TX, and welcomes new Managing Director, Keith Montante.

In May, Andersen Tax welcomes new Managing Director Lindsay Chamings.

On June 13, 2016, Andersen Global announces a new location in Panama through the
addition of Rivera, Bolivar y Castañedas (RBC) law firm in Panama City.

In July, Andersen Tax welcomes new Managing Director Michael Jordan.

In August, Andersen Tax announces the promotion of nine Managing Directors in local
offices. The promotes are Sabrina Chin, Emily Hall, Chris Leung, Kan Li, James
O'Brien, Shail Shah, Sandra Van De Walle, Parvin Van Enger and Mark Wood.

On September 8, 2016, Andersen Global adds legal services in Guatemala through the
addition of Ralón Orellana & Asociados Servicios Legales, S.A., a leading law firm
specializing in tax, constitutional and corporate issues for companies and individuals doing
business in or investing in Guatemala and Central America.

In September, Andersen Tax welcomes new Managing Director Chris DeVoe.

On September 26, 2016, Andersen Tax announces its collaboration with mgpartners, a
leading tax firm in Ireland. Although mgpartners is not yet a full-fledged member firm, they
will be collaborating with Andersen Tax and other Andersen Global member firms to provide
best-in-class service to clients.

In October, Andersen Tax welcomes new Managing Director Joe Gill.

In November, Andersen Tax welcomes new Managing Director Rob Popovitch.

In December, Andersen Tax welcomes new Managing Director, Associate Counsel Oscar
Alcantara.

Andersen Global now has a presence in 51 locations worldwide.

2017
Andersen Tax experienced significant growth in 2016 by opening six additional offices
internationally. This year, the firm expects to continue to expand domestically and
internationally throughout the year.

In January, Andersen Tax welcomes new Managing Director Nick Pavelich.

On January 16th, Andersen Global announced its collaboration with Beneli Tax Boutique, a
tax firm located in Tel Aviv, Israel. The establishment of a Collaboration Agreement with
Beneli Tax Boutique broadens Andersen’s presence globally to include the Middle East, and
is the initial stage to becoming a member firm of Andersen Global.

On March 1st, Andersen Tax & Legal made its debut in Spain as the Spanish member firm
of Andersen Global, Global Abogados, officially adopted the Andersen name and will now
operate as Andersen Tax & Legal in Spain.

On March 29th, Andersen Global welcomes the addition of Olleros Abogados, a Spanish
firm with locations in both Madrid and Valencia. They combined forces with the existing
Barcelona team, together operating as Andersen Tax & Legal in Spain.

On April 3rd, Andersen Global announces an enhanced presence in Israel by way of a

collaboration agreement with Yaron-Eldar, Paller, Schwartz & Co., a law firm with locations
in Tel Aviv and Haifa specializing in all aspects of taxation law, both in Israel and
internationally. The addition of Yaron-Eldar as a collaborating firm of Andersen Global is a
part of a larger expansion strategy in Israel and the Middle East.

On April 10, 2017, Andersen Tax & Legal debuts in Italy with the Italian member firm of
Andersen Global, Noda Studio, formally adopting the Andersen name. They will operate as
Andersen Tax & Legal and are the third member firm to assume the Andersen name in
Europe.

On April 24, 2017, Andersen Tax & Legal makes its debut in the Netherlands, as
Taxperience formally adopts the Andersen name in Amsterdam, Rotterdam, and 's-
Hertogenbosch. They will now function as Andersen Tax & Legal in the Netherlands, joining
several other Andersen Global member firms worldwide that have adopted the Andersen
name.

On May 8, 2017, Andersen Global is pleased to announce a new presence in Portugal with
the addition of Nobre Guedes, Mota Soares & Associados (NGMS), a law firm serving both
public and private entities. NGMS joins Andersen Global as a member firm and will adopt
the name Andersen Tax & Legal.

On May 15, 2017, Andersen Global is excited to announce a presence in Nigeria with the
addition of the practice formerly run under WTS ADEBIYI & Associates. Effective July 1st,
2017, the collaborating firm will join Andersen Global in Nigeria as Adebiyi Tax & Legal, and
later adopt the Andersen name with locations in both Lagos and Abuja. This kickstarts
Andersen’s expansion into Africa.
May 30, 2017 Andersen Global announced the launch of the Andersen name in Germany with the
addition of a new member firm,
Andersen RechtsanwaltsgesellschaftSteuerberatungsgesellschaft mbH, in Cologne, Germany.

In June, Andersen Tax welcomes new Managing Director, Michael Barbosa to the Los
Angeles office. Michael will join the Commercial Practice group specializing in International
Tax.

On June 13, 2017 Andersen Tax debuts in Luxembourg with Andersen Global member firm,
Alegis, assuming the Andersen name.

On June 27th, Andersen Tax announces its debut in Switzerland as MDR Advisory Group
formally adopts the Andersen name in Lugano. Andersen Tax in Lugano is one of three
Andersen Global member firms in Switzerland.

On July 5th, Andersen Tax makes its debut in Africa as the former Partners of WTS
ADEBIYI & Associates, a tax firm based in Nigeria, adopt the Andersen name.

On July 9th, Andersen Tax celebrated its 15 Year Anniversary. 15 years after Arthur
Andersen and four years after initiating our global expansion, it is clear that our vision of
becoming the firm known for the quality of its services is becoming a reality.

July 10th, Andersen Global announced the addition of a presence in Egypt by way of a
Collaboration Agreement with Maher Milad Iskander and Co., an Egyptian tax and legal firm
based in Cairo.

On July 12th, Andersen Global announced a presence in Turkey by way of a Collaboration

Agreement with NAZALI Tax & Legal, a leading tax and legal consultancy firm with locations
in Istanbul, Ankara, Izmir and Bursa.

The Andersen name debuted in Israel and the Middle East on July 18th as Beneli Tax
formally adopted the Andersen name. The tax firm, based in Tel Aviv, entered a
Collaboration Agreement with Andersen Global in January 2017, and is now a full-fledged
Andersen Global member firm operating under the name Andersen Tax.

In July, Andersen Tax welcomed Managing Director Nir Shtolzberg to the Los Angeles
Commercial Practice group.

On July 25th, Andersen Global announced a presence in Greece and Cyprus via a
Collaboration Agreement with UnityFour and Pistiolis-Triantafyllos & Associates. Together,
these firms provide legal, tax and accounting services in Greece; and tax, accounting and
fiduciary services in Cyprus.

In August, Andersen Tax announces the promotion of Managing Directors in local

offices. The promotes are James Calister, Kevin Fuller, John Nestor, Tom Shin, Daniel
Roberts, Jacqueline Riojas, Bill Toce and Megan Tsuei.
Andersen Tax welcomes two new Managing Directors to the Seattle
office, Stuart Ison and Dave Anderton and a Managing Director in the Chicago
office, Brad Rode in August.

Andersen Global announces a presence in Rio de Janeiro, Brazil by way of a Collaboration

Agreement with Branco Consultores, a tax and legal firm on August 8th.

On August 22nd, Andersen Global announced Dan DePaoli as Regional Managing Partner
for U.S., Canada and Israel.

Andersen Tax & Legal adds a location in Querétaro, Mexico on August 29, 2017.

In September, Leonardo Mesquita was appointed Regional Managing Director for Latin
America and Andrea De Vecchi and Paolo Mondia were named co-Managing Partners for
the European region.

James Lelko joined the firm as a new Managing Director in Chicago.

On September 19th, Andersen Global initiated its expansion into Uruguay.

In September, Andersen Global announces the establishment of a Senior Advisory

Council and a global Advisory Council.

On October 3rd, Andersen Global initiates expansion in Kenya with Nexus Business
Advisory Limited.

Andersen Global announces expansion into Ecuador on October 17th.

On October 19th, Andersen Tax launches in Canada.

Andersen Global announces an expanded presence in Canada through a Collaboration

Agreement with tax firm W.L. Dueck & Co. LLP on October 24th.

On November 12th, Andersen Global continues its expansion in Spain by way of a

Collaboration Agreement with Euskaltax.

Andersen Global announces a presence in Uganda by way of a Collaboration Agreement

with Ligomarc Advocates on November 21st.

On November 28th, Andersen Global announces the debut of the Andersen name
in Turkey.

Andersen Global continues its expansion in Switzerland as the Partners and professionals
at Reviglobal SA join the existing Andersen Tax team in Lugano on November 30th.

Andersen Global announce its collaboration with East African Law Chambers, a leading
legal and tax firm in Tanzania on December 5th.
On December 13th, Andersen Global is proud to announce an expanded presence in
Germany as Thierhoff Müller & Partner, combines its practice with Andersen Tax & Legal in
Germany.

Andersen Global Continues Expansion in the Middle East with Alem & Associates on
December 19th.

Andersen Global now has a presence in over 84 locations worldwide.

2018

On January 4th, Andersen Tax makes its debut in Ireland.

Andersen Global Continues Expansion in Dubai with GN Global Consulting on January

16th.

Andersen Global now has a presence in over 84 locations worldwide.