Enron’s success was built on a shaky foundation of accounting manipulation and financial secrecy.
Special Purpose Entities (SPEs) were used to hide billions in debt and inflate profits.
Executives exploited loopholes in financial regulations, misleading analysts and investors.
Warning signs appeared in early 2001 when the company’s financial statements became increasingly opaque.
Whistleblower Sherron Watkins raised internal alarms, but her concerns were ignored by top executives.
CEO Jeffrey Skilling’s sudden resignation in August 2001 fueled suspicions about the company’s stability.
By October 2001, Enron’s stock price plummeted as creditors and analysts began to scrutinize its finances.
On December 2, 2001, Enron filed for bankruptcy, marking the largest corporate collapse in U.S. history at the time.
The role of Arthur Andersen, Enron’s accounting firm, came under fire for approving fraudulent financial statements.
Employees lost jobs and retirement savings, while shareholders saw their investments evaporate overnight.