Corporate Fraud

Enron fraud scandal
Student’s name
Institutional affiliation

Introduction
Enron was a public company which was launched in 1985 to sell natural gas. Enron was started by Kenneth Lay as a chairman after identifying natural gas as a business opportunity. In 1994, the company had started other businesses which includes the electricity trade, energy services, and products as well as selling financial instruments to customers (Dobson, 2006). In the 20th century, the company had embraced online business which increased their profit. Enron downfall precipitated in August 2001 when the CEO Jeffrey Skilling resigned from the company.
Major players in Enron scandal and their jobs.
There are three major figures in Enron scandal:
Kenneth Lay
Kenneth was the founder, chairman, and CEO of Enron. Mr. Lay was charged by Securities and Exchange Commission for deception and embezzlement of public funds. Mr. Lay portrayed a false financial performance of the company which encouraged people to buy shares (Dobson, 2006). Mr. Lay the Enron CEO carried out in trade business for financial gain. Lay also sold the company shares at a price higher than the true value.
Jeffrey Skilling
Skilling was the CEO of Enron before resigning in the year 2001. Mr. Skilling was charged with fraud, conspiracy and inside trading. Skilling collaborated with Lay to give misleading information about the company. Skilling adopted mark-to-market accounting to hind the financial losses of the company. Skilling approved inaccurate financial statements.

Andrew Fastow
Fastow was the Chief Financial Officer of Enron. Fastow conducted in trade business to hind the financial losses and dues by use of Special Purpose Entities and off-the-books of accounts partnership.
Effects of the conduct of major players on Enron
The employees lost their jobs and retirement benefits.
The company suffered financial losses.
The company image was destroyed.
The company went bankrupt
Effects of the conduct of major player on stock prices and their history with the company.
The Enron stock prices depreciated which intern reduced the value of the shares. However, due to the false financial report disseminated by the company the investors continued to buy shares. When the truth was uncovered, the investors lost billions of money. Some of the investors, even after the court ruling, they were unable to recover the losses.
How the major players benefited from their activities.
The major players in the Enron scandal benefited by gaining financial stability which helped them to live a luxurious life.
Conclusion
Enron is one of the company in the US which went bankrupt due to mismanagement and misuse of public funds.
Reference.
Dobson. (2006).Enron: The Collapse of Corporate Culture. Enron and World Finance,193-205.doi:10.1057/9780230518865_12