History of Enron: What is Fraudulent Financial Reporting?

Decent Essays

Enron Corporation

History of Enron
Enron Corporation was founded in Omaha, Nebraska (US), and in 1985 Houston Natural Gas Consolidated with InterNorth to make, what is now established as the energy based company. The corporation based in Houston, Texas (founded in 1985) was known as the better enterprise in North America that accomplished one of the vast natural gas transmission networks. “Enron was a provider of products and services related to natural gas, electricity and communications to wholesale and retail costumers” (Chary, 112). The company had the position of the “Most Innovative” corporation for a couple of years. Nonetheless, back in December 2001, its bankruptcy held the biggest fraud scandals in the history of the US.
Kenneth Lay the former CEO of Houston Natural Gas became CEO and the chairman of enterprise and that was the time when they named it the Enron Corporation. The company swiftly all over the years increased to different regional areas, and gained a strong character.
During the preceding years of Enron’s expansion, they discovered oil traders in New York that crippled the accounts of company to the amount of almost $1 billion. However, the company had treated the loss up to $142 million and due to that loss the corporation started developing various services so that it would reduce the risk of the price fluctuations.
The Enron Corporation expanded countries such as South Africa (1992), entered European wholesalers market back in 1995 because the

Get Access