crime in the work place

White Collar Crimes

Crime in the Workplace (White Collar Crimes)

Crime in the Workplace (White Collar Crimes)

Enron was previously a Gas Company in America; it was first called Natural Gas Company. In 1979 the company was purchased by a holding company called Inter North, once that merge happened between the two companies the birth of Enron Company happened. By this time the U.S. congress created a lot of laws to deregulate sales of natural gas in the early 90’s, in which the company lost. The right to operates their own pipelines. “With the help of Jeffrey Skilling, who was initially a consultant and later became the company’s chief operating officer, Enron transformed itself into a trader of energy derivative contracts, acting as an intermediary between natural-gas producers and their customers” (Bondarenko, P.). 

The Enron Scandal was one of the biggest white-collar crimes that happened in U.S history. As the times change and the competition was on Enron sopped looking for good accounts and started creating fraudulent one and started to mainly rely on the dubious accounts. “The company utilized special purpose vehicles to hide its toxic assets and large debts from the investors and creditors” (Nigam, R.). Before this happened, the company was trading at $90.75 but once the scheming started their stock prices went down to as low as $0.26.

Due Enron being such a big company many individuals and other companies fell when they filed for bankruptcy. Companies such as Blockbuster, Blockbuster and Enron became partners, when that happened Enron started logging the amount of money that would come in, instead of what was coming in. Wall street also started to crumble as well, “Jeffrey Skillings hid the financial losses of the trading business and other operations of the company using MTM accounting.  This technique measures the value of a security based on its current market value instead of its book value” (.Segal, T.)

Reference

1. Bondarenko, P. (2022, August 13). Enron scandal. Encyclopedia Britannica. https://www.britannica.com/event/Enron-scandal

2. Nigam, R. (2022, June 2). Enron scandal. WallStreetMojo. Retrieved November 13, 2022, from https://www.wallstreetmojo.com/enron-scandal/#h-what-is-the-enron-scandal

3. Segal, T. (2022, July 13). Enron scandal: The fall of a wall street darling. Investopedia. Retrieved November 13, 2022, from https://www.investopedia.com/updates/enron-scandal-summary/