Stories of individual loss are equally staggering.
One 30-year employee lost $1.5 million
. Another saw a $2 million portfolio sliced to $4,000. A married couple who both worked at Enron were fired within 30 minutes of each other and lost $600,000 in retirement savings.
Did Enron employees lose their jobs?
Some 4,000 Enron employees were let go after the company declared bankruptcy. The AFL-CIO estimates that
28,500 workers have lost their jobs
from Enron, WorldCom and accounting firm Arthur Andersen alone.
Did Enron employees get their pensions?
Previously Enron said it would only put about $200 million in the plan, but pension agency officials forced the issue during a bankruptcy court hearing last week where the company was seeking approval of the pipeline sale. Rather than see the closing of the sale delayed,
Enron agreed to fully fund the pensions
.
How much did Enron employees make?
Enron disclosed in the 1,436-page filing that top employees received
$309.5 million
in salary, bonuses, long-term incentives, loan advances and other payments. They also exercised stock options and received stock valued at $434.5 million.
How did the Enron scandal affect employees?
Some longtime Enron employees lost
hundreds of thousands of dollars as the value of stock they accumulated in Enron's boom times tumbled in a period when they were not allowed to sell it
. Some lost a precious weekly paycheck and crucial health benefits.
How did Enron employees lose money?
Many of those workers were also Enron shareholders. As stock in the company dropped from
more than $80 per share to mere pennies
, tens of thousands of people saw their pension and investment accounts depleted or destroyed. All told, Enron employees are out more than $1 billion in pension holdings.
How did Enron steal money?
When Enron got started, natural gas and electricity were produced, transmitted and sold by state-regulated monopolies. They were often plodding and inefficient. Enron used Wall Street
magic
to transform energy supplies into financial instruments that could be traded online like stocks and bonds.
Did Enron employees lose their 401k?
Many Enron Corp. … Employees
suffered steep losses in
their 401(k) plans because more than 60% of the assets were in Enron's stock at one point, and the stock has dropped to about 50 cents a share from a peak of $90 last year.
How many employees does Enron have?
Before its bankruptcy on December 3, 2001, Enron employed
approximately 29,000 staff
and was a major electricity, natural gas, communications, and pulp and paper company, with claimed revenues of nearly $101 billion during 2000.
How many people lost their jobs at Arthur Andersen?
Arthur Andersen was found guilty of destroying documents related to its audit of Enron in 2002. The conviction was later overturned but by then its business had failed.
About 85,000 people
lost their jobs as a result.
What are the ethical issues in Enron scandal?
Enron faced an ethical accounting scandal in 2001 after using
“mark-to-market” accounting to fake their profits and misused special purpose entities, or SPEs
. Enron worked to make their losses seem less than they actually were, and “cooked the books” to make their income look much higher than it was.
What laws did Enron violate?
With its preliminary findings that Enron violated
public disclosure rules in its dealings with banks
, a bankruptcy examiner's report highlights numerous avenues for criminal investigators seeking to bring a case that the company's deluge of deals with off-the-books partnerships involved potential fraud.
What did Arthur Andersen do wrong?
On June 15, 2002, Andersen was convicted
of obstruction of justice for shredding documents related to its audit of Enron
, resulting in the Enron scandal. Although the Supreme Court reversed the firm's conviction, the impact of the scandal combined with the findings of criminal complicity ultimately destroyed the firm.
Who was the Enron whistleblower?
Sherron Watkins
, the Enron Corp. executive who warned management about fraud, said not having confidentiality and protection for whistleblowers can have a cost. Nearly 20 years after the energy company's collapse, Ms.
How could the collapse of Enron been avoided?
In the case of Enron, one
could have purchased put options
which allow the employee to take an offsetting short position to the established long position generated by owning the company stock.
