Question

how was the Enron scandal uncovered?

Answer 1

Enron VP Sheron Watkins wrote an anonymous letter to former CEO and chairman Ken Lay that stated current CEO skilling had left because of accounting inappropriaties and other illegal actions. She also questioned Enron accounting method and specifically targeted the Raptor transactions.

Later she met Ken Lay in person and added more details to her charges. She noted that Enron CFO Fastow, who controlled SPEs along with other employees had made their money and left Enron at risk for the support of Raptors.

In october 2001, Enron announced a third quarter loss of $ 618 million. During 2001, Enron stock fell from $86 to 30 cents. On October 22, SEC bgan an investigation into Enron's accounting procedures and partnership. The company officials admitted overstating revenue of $55million since 1997. In December, Enron filled for bankruptcy.