It was a natural gas and electricity company that served industries and markets. It was founded in 1985 in Omaha Nebraska, United States, by the union of two companies Houston Natural Gas and InterNorth, in which the manager was Kenneth Lay and then arrived Jeffrey Skilling, who is also considered responsible for the facts . Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the Original Essay This company collapsed just 5 years after its founding. This whole fraud started when, two weeks later, Lay declared that the company was doing well and had recorded losses of 638 million euros. When the company released its third-quarter 2001 results in October of that year, it revealed a black hole that sent its stock price down. The Securities Exchange Commission (SEC) has opened an investigation into the company and its results. Enron admitted to inflating its profits and filed for bankruptcy protection on December 2 of that year. Millions of dollars in debts were discovered to have been hidden in a web of transactions. Government hearings and investigations by regulatory agencies were followed by a criminal investigation aimed at determining who was responsible for Enron's collapse. Kenneth Lay left the presidency of the company because the creditors' committee wanted him to. An investigation by the company's auditor began, then Clifford Baxter, vice president of the company until May 2001, was found dead, then the jury declared Andersen, who was the company responsible for the audit, guilty of obstructing justice in the case. for destroying documents on losses of more than a billion dollars at the audited company. Skill and Lay are charged. The company's chief financial officer at the time, Andrew Fastow, was convicted of criminal charges and agreed to cooperate in the investigation into the matter, only to be sentenced to ten years in prison by the court. The trial began and lasted 15 weeks, during which 54 witnesses presented their arguments and provided extensive documentary evidence that provided many details about the financial situation that led to the company's bankruptcy. Enron scandal leaders Ken Lay and Skilling were convicted of fraud and deception. The founder and CEO at the time faced between 45 and 275 years in prison. As a result, this case was the most important in a series of scandals that affected the reputation of American companies towards the whole world. The U.S. Congress also created stricter legislation, known as the Sarbanes-Oxley Act, which imposed higher requirements for business accounting. . Ultimately, he left $31.8 billion in debt, his stocks lost all value, and 21,000 people around the world were left jobless. Enron emerged from bankruptcy protection in 2004 and long tried to sell its assets in order to continue paying its creditors for their mistakes. Keep in mind: this is just a sample. Get a personalized document now from our expert writers. Get a Custom Essay By analyzing this case we learned that we should always be waiting for the auditors and they do not necessarily have to be related to the auditor. client and cannot work as a consultant. Having a “strong business”, or saying it is doing well, does not mean we are going to rely on financial results solely by these comments, we always need to investigate a little more..