Financial Frauds- Enron $74 Billion Fraud Creative Accounting Scandal Shocked the Financial World - Joe Blogs

[TexasTowelie]

This is the INCREDIBLE story of ENRON an energy trading company that grew to one of the largest companies in the World but the management team were HIDING COSTS and INFLATING the profits and the company was actually BANKRUPT.

Enron was an energy trading company that grew to become the fifth largest business in America. But all was not as it seemed. The management team were pocketing millions of dollars from complex, off-the-books partnerships while reporting inflated profits to shareholders. After an investigation a massive accounting fraud was revealed and the company was declared insolvent. Its 2001 bankruptcy filing was the largest in American history at the time and incurred losses for investors of over $74 billion. The Enron Scandal is a classic example of how creative accounting can produce fictitious profits and make a company appear successful whilst it is actually incurring huge losses.