The different types of fraud that were committed by Enron.

2788 Words Jul 17th, 2003 12 Pages
TABLE OF CONTENTS

Introduction..........................................................................................1

Who Committed Fraud?.....................................................................1 - 2

How Was Fraud Committed?...............................................................2 - 4

Why Was Fraud Committed?...............................................................4 - 5

Penalties Of Committing Fraud.............................................................. 6

Ways Of Preventing Fraud............................................................... 6 - 10

Conclusion...................................................................................... 10
…show more content…
Here are two example partnerships, which show how Fastow, Kopper, and Skilling worked together to commit this fraud.

One of the first partnerships that they made was called LJM. LJM was a project that was started to fix a so called problem Enron had of not being able to sell, or put in paper an Internet start-up company that would make Enron look good. Because of not being able to do so Enron started a risky partnership with a company in the islands called LJM. Enron funded LJM with its own stock in order to fake the books.

The second partnership was called Chewco. The main story with Chewco was that Fastow wanted to run Chewco but he couldn't because of a conflict of

interest. So what Fastow did was put Kopper in control of Chewco. Here is where the fraud comes in, in order to cover up the connection between Chewco and Enron, the investments done by Kopper to Chewco was done under a partner's name. When Enron decided to buy Chewco, Fastow made Kopper drive up the

price of it in order make profits for himself and Kopper, and any other money Kopper received from the selling of Chewco to Enron he shared

with Fastow, this is how they committed their money laundering and wire fraud.

The next key player who committed fraud was Jeffrey Richter, the former head of Enron's Short-term California energy trading desk. He also committed wire fraud. Richter committed wire fraud specifically in one way. He was the one in charge of supervising the department of Enron that
Open Document