- Enron the smartest guys in the room stream trial#
- Enron the smartest guys in the room stream license#
While staying in a cabin outside Aspen, Colorado with his wife, Ken Lay suffers a heart attack and dies.Īndy Fatow is sentenced to six years in prison. Lay is convicted on all six counts of fraud. The jury convicts Skilling of 19 of 28 counts of wire fraud and securities fraud.
Enron the smartest guys in the room stream trial#
The jury begins deliberation in the trial of Lay and Skilling. Jury selection begins in the trial of Lay and Skilling. Richard Causey enters into a plea bargain agreement with the government. Lea Fastow, the wife of Andy Fastow, is charged with conspiracy and tax evasion.Īndy Fastow enters into a plea agreement and promises to cooperate in the prosecution of other Enron executives.Ī grand jury in Houston indicts Jeff Skilling on 35 counts, including charges of fraud, insider trading, and conspiracy.Ī grand jury indicts Ken Lay on 11 counts, including charges of wire fraud, securities fraud, bank fraud, and conspiracy.
Enron the smartest guys in the room stream license#
Bush signs the Sarbanes-Oxley Act imposing new accounting and reporting obligations on American businesses.Įnron accounting firm Arthur Andersen surrenders its CPA license and its 85,000 employees lose their jobs.Īndy Fastow is indicted on 78 counts of fraudulent conduct. Skilling testifies before about the Enron collapse before a congressional committee Fastow invokes his 5th Amendment protection and refuses to testify.Įnron's auditing firm, Arthur Andersen, is convicted of obstruction of justice in connection with its shredding of Enron documents. Ken lay resigns as Enron's chairman and CEO.
Skilling tells the New York Times, "I had no idea that the compay was in anything but excellent shape." Enron's stock price falls to $0.61.Įnron seeks Chapter 11 bankruptcy protection. Enron's credit rating is reduced to junk status. In a desperate effort to save itself from bankruptcy, Enron explores merger or acquisition possibilities with rival Dynegy.ĭynegy says it will not acquire Enron. From August through the end of October, Ken Lay has sold 918,000 shares of Enron while insisting to others the company was in good financial shape. Enron's stock drops 20% in a day after the SEC announces that it will investigate several Enron deals.Ĭredit rating agencies lower Enron's credit rating. The Enron Board learns that Fastow received $30 million (more, actually) from managing LJM partnerships. Lay promises to take her concerns to the company's law firm, Vinson & Ellis.Ī manager of an important hedge fund says "Enron stock is trading under a cloud" as its stock price continues to fall.Įnron announces that it will have to restate its earnings from 1997 to 2000 to correct accounting violations. Watkins meets with Lay and gives him a 6-page letter detailing problems with Enron's accounting practices. In the letter she says she is worried Enron "will implode in a wave of accounting scandals." Vice president for development at Enron, Sherron Watkins, sends an anonymous letter to Lay criticizing the company's accounting practices.
Skilling verbally attacks an analyst who questions Enron's failure to release a balance sheet along with its earnings statements, calling the an "asshole." She writes that investors are generally clueless as to how Enron earns its reported profits. Fortune magazine calls it the most innovative large company in the United States.īethany McLean publishes an article Is Enron Overpriced? in Fortune magazine. Enron claims $110 million in profits from the deal, even though the network would fail and Blockbuster withdraws from the contract.Įnron stock its an all-time price high of $90 a share.Īndy Fastow and CAO Richard Causey meet to discuss the "Global Galactic" agreement that protects Fastow from losses in the side deals he has made for Enron with LJM.Įnron finishes the tear with its stock price up 87% to $83.13, 70 times earnings. Fastow receives an exemption from conflict-of-interest rules by the Board of Directors, thus allowing him to manage the companies.Įnron and Blockbuster enter into a 20-year agreement to stream on-demand video entertainment. The new accounting system allows Enron to begin reporting fast-growing profits.Įnron becomes the largest seller of natural gas in North America.Ĭhief Financial Officer Andy Fastow forms two limited partnerships, LJM Cayman and LJM2 for the purpose of buying Enron's poorly assets. The SEC allows Enron to use mark-to market accounting instead of traditional, accrual accounting. Jeffrey Skilling assumes job as chairman and chief executive of Enron Finance.Īndy Fastow is hired by Skilling for a position in Enron's new finance business Enron is founded by Ken Lay after merging Houston Natural Gas and InterNorth.
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