An ENRON Scandal Summary

The ENRON Scandal is considered to be one of the most notorious in American history; an
ENRON scandal summary of events is considered by many historians and economists alike to
have been an unofficial blueprint for a case study on White Collar Crime
 – 
White Collar Crime is defined as non-violent, financially-based criminal activity typically
undertaken within a setting in which its participants retain advanced education with regard to
employment that is considered to be prestigious. The following took place in the midst of the
ENRON Scandal:
The Deregulation of ENRON
While the term regulation within a commercial and corporate setting typically applied to the
government’s ability to regulate and authorize commercial activity and behavior with regard to
individual businesses, the ENRON executives applied for and were subsequently granted
government deregulation. As a result of this declaration of deregulation, ENRON executives
were permitted to maintain agency over the earnings reports that were released to investors and
employees alike.
This agency allowed ENRON’s earning reports to be
extremely skewed in nature – losses were not illustrated in their entirety, prompting more and
more investments on the part of investors wishing to partake in what seemed like a profitable
company

Misrepresentation
By misrepresenting earnings reports while continuing to enjoy the revenue provided by the
investors not privy to the true financial condition of ENRON, the executives of ENRON
embezzled funds funneling in from investments while reporting fraudulent earnings to those
investors; this not only proliferated more investments from current stockholders but also
attracted new investors desiring the enjoy the apparent financial gains enjoyed by the ENRON
corporation.
Fraudulent Energy Crisis
In the year 2000, subsequent to the discovery of the crimes listed in the above ENRON Scandal
Summary, ENRON had announced that there was a critical circumstance within California with
regard to the supply of Natural Gas. Due to the fact, that ENRON was a then-widely respected
corporation, the general populace was not wary about the validity of these statements. However,
upon retroactive review, many historians and economists suspect that the ENRON executives
manufactured this crisis in preparation for the discovery of the fraud they had committed
– although the executives of ENRON were enjoying the funds rendered from investments, the
corporation itself was approaching bankruptcy

Embezzlement
An ENRON Scandal Summary of the acts of Embezzlement undertaken by ENRON Executives
may be defined as the criminal activity involving the unlawful and unethical attainment of
monies and funding by employees; typically, funds that are embezzled are intended for company
use in lieu of personal use. While the ENRON executives were pocketing the investment funds
from unsuspecting investors, those funds were being stolen from the company, which resulted in
its bankruptcy of the company.
Losses and Consequences
Due to the actions of the ENRON executives, the ENRON Company went bankrupt. The loss
sustained by investors exceeded $70 billion. Furthermore, these actions cost both trustees and
employees upwards of $2 billion; this total is considered to be a result of misappropriated
investments, pension funds, stock options, and savings plans – as a result of government
regulation and the limited liability