Good Essays
The Illusion That Took the World by Surprise

Enron: The Smartest Guys In the Room is a movie about Enron and how it fooled the world into believing it was one of the most stable and profitable companies in the U.S. This is very sad because many people believed in the figures Enron was producing and entrusted their life saving in Enron stock. The scandal didn’t just affect a small group of people but 10’s of thousands of people lost everything, due to an illusion.

Kenneth Lay earning a Ph.D. in economics at the University of Houston joined Houston Natural Gas Co. as chairman and CEO. The company merged with InterNorth in 1985, and was later renamed Enron Corp. In 1986, Lay was appointed to chairman and chief executive officer of
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It started with the Valhalla scandal where he begged traders to gamble with millions in the gas commodity sector then he hired Skilling to run the financials and bring mark to market so he can manipulate the balance sheet. Then allowing Fastow to make hundreds for false partnerships to hide debt. There was no length that Lay wouldn’t go to in order to see his company succeed.
In 2001, Lay sold large amounts of Enron stock in September and October as its share price fell. All told, he liquidated more than $300 million in Enron stock. Enron filed for bankruptcy in December 2001—the biggest bankruptcy filing in U.S. history at the time, costing 20,000 employees their jobs and many their life savings, and losing billions for investors. In July 2004, Lay was indicted for his role in the company 's collapse, including 11 counts of securities fraud, wire fraud, and making false and misleading statements. On May 25, 2006, Lay was found guilty on all six counts of conspiracy and fraud. His sentencing was scheduled to take place on October 23, 2006. But died of a heart attack while on vacation in Colorado.
Skilling unexpectedly resigned and sold almost $60 million in Enron shares. The company declared bankruptcy in December 2001. Jeff Skilling was convicted of multiple federal felony charges in 2006, which including insider trading, securities fraud, and making false statements to
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