The Enron scandal is a significant financial scandal in U.S.

history, involving the Houston-based energy

company Enron. Here’s a summary:

1. Growth and Fraud:

 Enron grew rapidly in the 1990s, becoming a major energy company.

 The company used complex accounting techniques, with the help of auditing firm Arthur
Andersen, to hide debt and inflate profits.

2. Discovery and Collapse:

 In 2001, analysts and journalists began to question Enron's financial health.

 Enron admitted to falsifying earnings and concealing debt, causing its stock to plummet
and leading to bankruptcy in December 2001.

3. Consequences:

 Thousands of employees lost their jobs and retirement savings.

 Arthur Andersen, Enron's auditor, was implicated in the fraud and eventually collapsed.

4. Legal Repercussions:

 Top executives, including CEO Jeffrey Skilling and Chairman Kenneth Lay, were
prosecuted and convicted.

 The Sarbanes-Oxley Act of 2002 was enacted to improve corporate governance and
prevent future fraud.

The scandal underscored the necessity for transparency and ethics in corporate practices.