The Smartest Guys in the Room
|
|  Yüklə 64 Kb.
|
| Name: _______KEY________________
Ken Lay- Founder of Enron Jeff Skilling- CEO Andy Fastow- CFO “The Smartest Guys in the Room” Throughout the story pay attention to the ticker listing the date and stock price. Keep timeline below: 
1/21 8/16 8/23/ 10/15 12/4/01 $.04 $17.20 $36 $90 $19 What is “mark-to-market” accounting? Book future profits before they occurred Explain the working environment of Enron under Skilling’s management. Cut-throat. Believed in Darwinism. PRC Performance Rating Committee, employees rated employees. How much money did Lu Pi leave Enron with? $250 million What was the broadband business supposed to provide? Movies on demand What is “structured finance”? Covering up a company’s debts and making the company look like it was making large profit How did traders make money off California power? Created artificial blackouts by shutting down power pants; gaining from increased prices of energy How much money did the energy crisis cost the state of California? $30 billion What are some things Sharon Watkins’ memo said to Ken Lay? Warned about incorrectness of accounting; fraudulent activities. How much money did Andy Fastow make with the LJM partnership? $45 Million What happened on December 4, 2001? Enron filed bankruptcy. After his trial, what was Andy Fastow’s sentence? Forfeit $23 million in assets; 10 years prison How many people lost their jobs when Arthur Anderson fell? 29,000 Did Ken Lay ever end up going to jail? Why or Why not? No, died. (As of 4/2007 Lay’s estate was being sued. Lay’s wife said she should get estate worth $13 million. Over the course of criminal activity, Lay received $99 million.) 
Prosecution Scorecard Criminal defendants Total: 34 Guilty pleas: 16
Jury Conviction: 5 Ken Lay, Died before sentencing, conviction vacated Jeff Skilling, 24 years 4 months in prision Dan Boyle, 3 years 10 months James Brown, 3 years, 10 months Acquittal: 2; Shelia Kahanek, not guilty Michael Krautz, found not guilty in second trial Conviction overturned: 2 Arthur Anderson, Government won’t retry Kevin Howard, Judge orders five convictions overturned Case dropped: 1 David Duncan, plea and charge withdrawn In limbo: 2 Robert Furst, Conviction overturned on appeal Daniel Bayly, Conviction overturned on appeal Others charged: 8 Broadband Division British Bankers Gary Mulgrew, Extradited, awaiting trial David Bermingham, Extradited, awaiting trial Giles Darby, Extradited, awaiting trial (http://www.chron.com/news/specials/enron/ Name: _______________________ “The Smartest Guys in the Room” Throughout the story pay attention to the ticker listing the date and stock price. Keep timeline below:
$
What is “mark-to-market” accounting? Explain the working environment of Enron under Skilling’s management. How much money did Lu Pi leave Enron with? What was the broadband business supposed to provide?
What is “structured finance”? How did traders make money off California power?
How much money did the energy crisis cost the state of California? What are some things Sharon Watkins’ memo said to Ken Lay?
How much money did Andy Fastow make with the LJM partnership? What happened on December 4, 2001? After his trial, what was Andy Fastow’s sentence? How many people lost their jobs when Arthur Anderson fell? Did Ken Lay ever end up going to jail? Why or Why not?
Prosecution Scorecard Criminal defendants Total: 34 Guilty pleas: 16
Jury Conviction: 5 Ken Lay, Died before sentencing, conviction vacated Jeff Skilling, 24 years 4 months in prision Dan Boyle, 3 years 10 months James Brown, 3 years, 10 months Acquittal: 2; Shelia Kahanek, not guilty Michael Krautz, found not guilty in second trial Conviction overturned: 2 Arthur Anderson, Government won’t retry Kevin Howard, Judge orders five convictions overturned Case dropped: 1 David Duncan, plea and charge withdrawn In limbo: 2 Robert Furst, Conviction overturned on appeal Daniel Bayly, Conviction overturned on appeal Others charged: 8 Broadband Division British Bankers Gary Mulgrew, Extradited, awaiting trial David Bermingham, Extradited, awaiting trial Giles Darby, Extradited, awaiting trial (http://www.chron.com/news/specials/enron/ |