Brianna Koref, MOD 4, White Collar Crime.docx - Running head FINAL RESEARCH PAPER Final Research Paper Brianna Koref Post University 1 FINAL RESEARCH

Brianna Koref, MOD 4, White Collar Crime.docx - Running...

This preview shows page 1 - 4 out of 9 pages.

Running head: FINAL RESEARCH PAPER 1 Final Research Paper Brianna Koref Post University
Image of page 1
FINAL RESEARCH PAPER 2 Final Research Paper White-collar crime was never payed attention to until more people started to realize how detrimental it actually is. White-collar crime goes back thousands of years, however the term only developed in 1939. White-collar crimes are crimes that are committed by business or government professionals. These crimes can include things such as embezzlement, fraud or environmental crimes. Recently, white-collar crimes in America have become a major problem and although white-collar crimes are viewed as harsh as other heinous crimes such as murder, burglary, etc.; they can be very dangerous as well. White-collar crime can have a domino effect and cause families to lose their life savings and everything they have. White-collar crimes can shatter the American economy. Enron was a corporation that reached incredible heights then fell to a gruesome ending. Over thousands of Enron employees were affected and thus rattled the way Wall Street was functioning. On December 2 nd , 2001, Enron declared bankruptcy and their shares when from $90.75 to $0.26 (Segal, 2019). Enron was a well-known, dominant and impressive company and many people still have no knowledge on why it crashed like it did. At Enron’s highest peak, they were one of the largest and powerful companies in the U.S. Enron deceived many people with fake holdings and off-the- books accounting for so long, therefore Enron disintegrated (Segal, 2019). Enron was one of the largest auditing and accounting companies in the world and because of this, Enron is one of the biggest bankruptcy cases in the history of the United States. Enron was founded in the year 1985 by Kenneth Lay which has two
Image of page 2
FINAL RESEARCH PAPER 3 companies, Houston Natural Gas Corporation and InterNorth Inc and was renamed Enron in 1986 (Bondareko, 2018). In the early 1990’s U.S. Congress created a set of laws that made Enron lose rights to operate pipelines. Thus, leading to Enron’s transformation into a trader of energy derivative contracts. This allowed Enron to act as an intermediary between natural-gas customers and producers (Bondareko, 2018). With the help of Jeffrey Skilling these trades allow producers to fix the selling price for their products through a contract for a fee under Enron. Under Jeffrey Skilling’s control, Enron became dominant and lead the market for natural-gas and the company made huge profits on the natural-gas contracts and their trades (Bondareko, 2018). Jeffrey Skilling then hired people from MBA programs that were top notch. He made sure that the environment of Enron was competitive, and everyone was always working their hardest. One of the top candidates was Andrew Fastow, who eventually became the company’s chief financial officer. Andrew Fastow saw what the company’s financing was through instruments, investments and Enron’s trading operation (Bondareko, 2018).
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 9 pages?

  • Summer '19
  • Enron Creditors Recovery Corp

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes