October 22, 2001 — The SEC begins to investigate Enron

It was only the beginning of the end, but by the time it was done, one of the greatest success stories of American business would be revealed to be one of the greatest lies in American business. Enron was an energy provider originally based in Houston, Texas, but which grew to become an international titan with interests in gas, electricity and even non-energy fields such as communications. It was lauded for its innovations in business.

However, it turned out that the most innovative thing about them was their interesting new accounting practices: Enron’s single greatest contribution to the history of American business was their creative – and illegal – account keeping. By the time the SEC concluded their investigation, Enron would have declared bankruptcy and their director, Ken Lay, would be convicted on ten counts of assorted frauds. He died of a heart attack before he commenced his prison sentence.

Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *