North South University

Department of Accounting & Finance

Dhaka, Bangladesh.

Assignment 01

Submitted by:

MD. Moshiur Rahman

NSU ID# 1511985630

COURSE CODE: ACT 201

SECTION: 47
An ENRON Scandal Summary

The ENRON Scandal is considered to be one of the most notorious within American
history; an ENRON scandal summary of events is considered by many historians and
economists alike to have been an unofficial blueprint for a case study on White Collar
Crime – White Collar Crime is defined as non-violent, financially-based criminal activity
typically undertaken within a setting in which its participants retain advanced education
with regard to employment that is considered to be prestigious.

In the year 2000, subsequent to the discovery of the crimes listed in the above ENRON
Scandal Summary, ENRON had announced that there was a critical circumstance
within California with regard to the supply of Natural Gas. Due to the fact the ENRON
was a then-widely respected corporation, the general populace were not wary about the
validity of these statements. However, upon retroactive review, many historians and
economists suspect that the ENRON executives manufactured this crisis in preparation
of the discovery of the fraud they had committed – although the executives of ENRON
were enjoying the funds rendered from investments, the corporation itself was
approaching bankruptcy.

An ENRON Scandal Summary of the acts of Embezzlement undertaken by ENRON

Executives may be defined as the criminal activity involving the unlawful and unethical
attainment of monies and funding by employees; typically, funds that are embezzled are
intended for company use in lieu of personal use. While the ENRON executives were
pocketing the investment funds from unsuspecting investors, those funds were being
stolen from the company, which resulted in the bankruptcy of the company.

Due to the actions of the ENRON executives, the ENRON Company went bankrupt. The
loss sustained by investors exceeded $70 billion. Furthermore, these actions cost both
trustees and employees upwards of $2 billion; this total is considered to be a result of
misappropriated investments, pension funds, stock options, and savings plans – as a
result of the government regulation and the limited liability status of the ENRON
Corporation, only a small amount of the money lost was ever returned.

Retrieved from: http://finance.laws.com/enron-scandal-summary