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White Collar Crime: The Enron Fraudulent Case

Decent Essays
White collar or corporate crimes have not been new in the history of criminology. However, there have been certain cases that have changed the way corporate crimes are defined and create an impact on the overall society. One such case was related to the collapse of the Enron. This infamous case has redefined the white-collar crimes and corporate involvement in criminal activities. According to the theoretical definition of white collar crime by Sutherland (1945), the Enron fraudulent case and its collapse are a classical example of white collar and corporate crime because it involved highly respectable and professional individuals for committing the crime very intelligently.
The Enron was known as one of the energy giants of the United States. It was named as the “America’s Most Innovative Company” by the Fortune. Just before its collapse, its overall rating was AAA+ with the revenues beyond $100 billion. With such impressive reputation, by the start of 21st century, Enron was perceived to be indestructible. There have always been rumors about suspicious accounting activities and involvements of the top management of Enron. However, no evidence could be found about it
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Instead, it was such massively deceptive accounting alteration that it raised questions about the proper definition and scope of the white-collar crime. While only a few major employees and members of the company were involved in this fraudulent activity, yet it affected the life of several hundred thousand Americans. As the investigation report about Enron was publically released, the AAA+ credit rated company collapsed instantly making hundreds and thousands homeless and jobless. This had a serious impact on the stability of the stock exchange as well. The collapse of the company was not only composed of the financial stability of the company bit as they have also destroyed their reputation at the global
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