What caused the Enron scandal?
Enron scandal
Enron's complex financial statements were confusing to shareholders and analysts.[13][14] In addition, its complex business model and unethical practices required that the company use accounting limitations to misrepresent earnings and modify the balance sheet to indicate favorable performance.[15]
Enron scandal
Although Michael Kopper worked at Enron for more than seven years, Lay did not know of Kopper even after the company's bankruptcy. Kopper was able to keep his name anonymous in the entire affair.[146] Kopper was the first Enron executive to plead guilty.[147] Chief Accounting Officer Rick Causey was indicted with six felony charges for disguising Enron's financial condition during his tenure.[148] After pleading not guilty, he later switched to guilty and was sentenced to seven years in prison.[149]