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In August 2000, Enron's stock price attained its greatest value, closing at $90 on the 23rd. [37]: 244 At this time, Enron executives, who possessed inside information on the hidden losses, began to sell their stock. At the same time, the general public and Enron's investors were told to buy the stock.
Logo of Enron. The Enron scandal was an accounting scandal involving Enron Corporation, an American energy company based in Houston, Texas.When news of widespread fraud within the company became public in October 2001, the company filed for bankruptcy and its accounting firm, Arthur Andersen—then one of the five largest audit and accountancy partnerships in the world—was effectively dissolved.
Lou Lung Pai ( Chinese: 白露龍; pinyin: Bái Lòulóng) (born June 23, 1947) is a Chinese-American businessman and former Enron executive. He was CEO of Enron subsidiaries Enron Energy Services [ 5] and Enron Xcelerator, a venture capital division. [ 2] He left Enron with over $250 million. Pai was the second-largest land owner in Colorado ...
In the end, of course, their confidence is exposed as blind faith: Enron's stock plunges from $95 to $1 in just 24 days as it becomes clear that the company is little more than a house of cards.
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Skilling's odd behavior serves as a red flag to investors, who begin to question how financially healthy the company really is and start selling their shares, causing Enron's stock price to decline. Soon after Skilling's departure, whistleblower Sherron Watkins discovers the fraud in Enron's books and alerts Lay, telling him the company is ...
Using their new Internet-based trading network, EnronOnline, [citation needed] [13] his trading book is credited with making three quarters of a billion dollars for Enron in 2001 and he was rewarded with the largest bonus in Enron history, some $8 million. [10] [14] His former colleagues dubbed him "king of natural gas."
Enron's business losses were masked by accounting tricks, while the insiders raked off huge "profits" and bonuses for themselves. The game was eventually undone by huge losses, bad investments and the structure of the outside partnerships themselves, the solvency of which depended on ever-rising Enron stock prices.