Enron 2005 the movie started with an oldie music
Bill Lerach Attorney
Jeffrey Skilling Former Enron President & CEO
Ken Lay Chairman/CEO Enron stated that he didn’t do anything wrong
Political conspiracy, pled not guilty to 11 criminal charges faces up to 175
years if convicted, energy and natural gas
Enron being the largest
Andrew Fastow CFO
20,000 lost their jobs
2B retirement funds disappeared
1985 founding of Enron through merger of vast natural gas pipelines
Enron oil scandal aka Vahalla scandal
Falsified records
Like gambling sometimes you win sometimes you lose but enron seems
always winning
106,500 check to Mastroeni converted to currency and given to Mr. M
Yass(My ass)
Please Keep Making us Millions
Mike Mackleroy enron executive suspicious of enron high profits
Louis Burget 3+ M dollars puts personal account
John Beard Enron accountant
Company Profits to Personal accounts
Destroying the records
Traders had gamble away all of enrons reserves
Mackelroy bluffed the markets and manage to save the company
Ken Lay innocently deny that he doesn’t know anything where in fact he
knew it from the start
A man with a big idea Jeff Skilling
A new way of deliver energy rather than the old pipeline
Transform energy into financial instruments that could be traded like
stocks in bonds
Amanda Martin-Brock Executive Enron
He is allowed to use accounting known to market
Arthur Andersen
Mark to Market Treatment allowed enron to book unrealized gains/future
profits on the very day the deal was signed no matter how little cash
actually came in the door but to the outside world it is different because
that’s what enron stated HFV(Hypothetical Future Value) Accounting
Money is the only thing that motivates people
PRC (Performance review committee) terminating employees who didn’t
meet the 5 grade.
Charles Wickman Trader, Enron Corp.
Guys with spikes
Cliff Bakster sales manager
Lou Pai money and peculiar strippers
Pumping dump
Love for sale
Analyst weren’t analysing at all they’re willingly believe what Skilling says
calls skilling when they asked about Enron
The only analyst who is skeptical about enron story John Olson
Fired olson soon after
Fastow rewarded the bank 2 investment banking job worth 50M
Enron stocks kept rising but money kepr decreasing
Enron created the market to buy and sell bandwidth like a commodity.
Enron broadband services
Executives selling stocks
Ken Lay 300M
Kim Rise 50m
Cliff Baxter 35M
Jeff Skilling 200M
The emperor has no clothes
Jim Chanos President, Kynikos associates investor who questioned enron
numbers.
Bethany Maclean
How they get the profit? Skillings seem can’t answer
The sorcerer’s apprentice
Andy Fastow to cover up the fact that enron is becoming finacial fantasy
land. To please the boss he hide the fact that Enron is in 30M in debt
Created lot of companies to perform magic to make the debt disappear
Stashing its debt in Fastow company where investors couldn’t see it
LJM Partnership exist to do business with Enron 96 individual bankers 25M
each
Useful idiots us financial institution
Andersen accounting firm receives 1M a week
Robert Traband J.P Morgan Chase & Co. VP
Kelly Martin Merrill Lynch Int’l Private Client VP participate in cooking
enron books by pretending to purchase an existing enron asset when it is
really engage in alone
Charles Prince Citigroup Global Corp. & Investment Bank Chairman & CEO
500m ,losses Tom white EES questioned how they gonna make profit at
the end of the quarter
How is it we made the numbers---California (Kal-ee-’for-nyah)
Rolling blackout Sacramento San Francisco Beverly Hillslong beach San
diego
26 thousand power miles enough to circle the earth but for the second day
in a row not enough electricity for americas largest state and a world 6th
largest economy
Harvey Rosenfield Consumer Advocate
Loreta Lynch California Public Utilities Commissioner
Colin Whitehead, Trader Enron Corp. Portland
Gray Davis Former Governor of California
Jason Dunn California State Senator
Head Trader Tim Belden wheel out Get shorty Fat boy death star
Regulatory’s all in a big concern about is we’re wheeling power out of
California..
He arbitrages the California Market to the tune of a million bucks or two a
day
George W. Bush became the president
The ship is sinking
Doubts keep rising and the stocks began to fall
Aug 14 2001 resigned
Philip Hilder
Sherin Watkins
It was a wonderful life
Cliff Baxter committed suicide
23M assets forfeited by Fastow reduce ten years to testify about the others
Andersen guilty of obstruction accounting firm will end audit work 29k lost
their jobs shareholders are suing enron and bank partners for 20B dollars
Conspiracy of fraud
20k employees lost their jobs and medical insurance
Average severance pay 4500
Top executives were paid bonuses totalling 55M
In 2001
Employees lost 1.2 billion Retirement funds
Retirees lost 2B pension funds
Top executives cashed in 116M in stock
Criminal Charges
Guilty Pleas: 15 convictions 6 Acquittals 1 Pending case 11
3 California Traders pled guilty to wire fraud
Fout Merrill Lynch executives convicted of fraud in Nigerian Barge case