The Enron Scandal: The biggest fraud in the history of America

he Enron Corporation
The Enron Corporation is the greatest corporate scandal and bankruptcy in American History. The legacy is one of White Collar Corporate Crime defined best in criminology as Rational Choice Theory coupled with the Social Mirror Effect and General Strain Theory. The Enron Corporation (1985–2001) operated for 16 years rising from 10 billion to 74 billion in total assets that exceeded 100 billion in financial revenue. In reality, Enron was a Energy Mega-Corporation ranked at the 7th largest United States Economic Institution. In 2001, the complex network of crime covered by the Enron Illusion’s web of lies came crashing down at the discovery of Enron’s debt being in billions of dollars. In 11/2001, Enron’s stock market price was at $90.71 to less than around 70 cents on the stock market. The Enron Corporation filed their Chapter 11 United States Bankruptcy Code in 12/2001. Enron’s legacy is one of avarice and pride being the single greatest Corporate Scandal and Bankruptcy in American history.

Enron Founder, CEO, Ex-CEO, Mastermind, Architect Kenneth Lay
Kenneth Lay obtained his Ph.D in Economics from the University of Houston. Lay and Enron Executive Director associates shared a philosophical view of business of corporate enterprise free from government regulation. Enron Architect and Founder shared this collective ideal of Elitist Model of Business among other Capitalists comprised of Ayn Rand’s philosophy of Objectivism which was the perfect garden to be cultivated for Social Disorganization Theory.

The Valhalla Scandal
Social Disorganization Theory of a White Collar Criminal Economic Institution should have alerted Law Enforcement for extensive monitoring for General Strain Theory of Innovators striving for the status of Rebellion as the social-norm in Rational Choice Theory. These are statements which create an analysis of Enron’s first disclosure of corruption came in the Valhalla Scandal (Enron Oil Scandal) where two Enron traders were gambling on the price of oil rising or lowering which raised suspicion that were confirmed by anonymous tips concerning current Enron President Michael Borget that revealed the offshore banking accounts, falsified accounting documents, and Enron Executives extensive gambling for personal gains that the socially-labeled “Two Rogue Enron Traders” had gambled away Enron’s reserves convicting Borget and others for insider trading and fraud. This was the the revelation of all that followed would only through Rational Choice Theory and General Strain Theory prove as a defining revelation in the future of Enron in their unbelievable profit gains that defined the Enron Corporation as a Mega-Corporate Economic Institution maintained by the Enron Illusion.

The Enron Illusion
The Enron Illusion is defined by Rational Choice Theory to manufacture a fantasy in an environment promoting capitalistic Social Disorganization Theory while elevating their status as Innovators to the end goal of successful Rebels who would have normalized this in our Economic Institutions operating under General Strain Theory.

Enron Rationally involved end/means calculations. Enron freely choose this behavior, both conforming and deviant, based on their rational calculations as detailed by further examples detailed in my thesis. The central element of calculation involves a cost benefit analysis: Pleasure versus pain or hedonistic calculus. This will be evident in Chief Executive Officer Jeffrey Skilling’s Mark-To-Marketing Business Model adopted by Enron to maintain the Enron Illusion while Chief Financial Officer Andrew Fastow falsified accounting to present fictional net worth in costs, profits, and revenue generated by CEO Skilling’s Mark-To-Marketing fictional accounting practice. The Enron Illusion being made by Rational Choice, with all other conditions equal, will be directed towards the maximization of individual pleasure. Jeffrey Skilling signed on as Enron CEO after the Valhalla Scandal after Enron agreed to adopt CEO Skilling’s Mark-To-Marketing Practice.

Enron Illusion Creator, Enron CEO, COO, Jeffrey Skilling
CEO Jeffrey Skilling only joined Enron after the agreement that Enron adopt the Mark-To-Marketing accounting procedure where long-term business contracts were signed then the value of the estimated future values of assets, profits, revenues were used as the present accounting net worth as a misleading fictional accounting measure. The ethical and realistic accounting practice of businesses is the costs of supply and revenues from profits generated from products. In this case it was Enron as an Energy Mega-Corporation. Mark-To-Market was proven to be a major financial disaster for Enron was the first non-financial company to adopt it as a practice. This was masterminded by CEO Jeffrey Skilling which would inevitably destroy Skilling as a Machiavellian mastermind of confidence artistry. This was a pressurizing force of General Strain Theory that caused Enron to descend down this path by Rational Choice Theory as it was socially-labeled at the time as “genius” by Enron and associated business persons while championed by Founder Kenneth Lay which Mark-To-Marketing was the causation of the Enron Illusion that precipitated innumerable antisocial activities of White Collar Corporate Crime.

ENRON’S LEGACY: THE HOUSE OF CARDS FALLS
The suicide of Enron Executive Cliff Baxter on 1/2002 just before the Congressional Committee in 2/2002 brought a habeas corpus of reasonable guilt to be legitimized against the Executives and their collaborators responsible for the innumerable White Collar Corporate Crimes premeditated, perpetrated, and acted out by Enron. Enron Executive Cliff Baxter should not have taken his own life as a Bipolar Depression sufferer yet highly-intelligent individual. Executive Cliff Baxter may have felt the Strain of Enron and despite Cliff’s concerns of ethics among the elite circle of Enron’s White Collar Corporate Criminals operating under Rational Choice Theory and General Strain Theory. Enron Executive Cliff Baxter by speculation on his actions may have known ethically and morally in the boundaries of the law the CEO Skilling and CFO Fastow were doing explicit criminal activities while Cliff was concerned but uncertain of the apex of White Collar Corporate Crime committed. Only speculation can surround Cliff Baxter for CEO Skilling, CFO Fastow, and Enron Founder Kenneth Lay all faced charges of White Collar Corporate Crime that were so egregiously toxic after the incidents in California surrounding Enron’s involvement to deregulate business in the form of Enron’s donations the the 2000s political establishment in placing California Governor Arnold Schwarzenegger among many other Conservative Politicians and the influential relations to the 2000s Presidential Administration of George H. W. Bush who the Republican Political Institutions collectively state on Enron is summarized, “I did not have political relations with that business.”

Enron Founder, CEO, Ex-CEO, Mastermind, Architect Kenneth Lay died of cardiac arrest before he could face his 45 years prison sentencing of being convicted of 6 securities and wires fraud. Enron CEO Jeffrey Skilling responsible for creating the Enron Illusion which made such crimes permissible under Mark-To-Market accounting practice was convicted of 19/28 counts of securities and wires fraud. Skilling was sentenced to 24 years, 4 months in prison. In 2013, the US Justice Department negotiated a deal with Skilling to cut 10 years from his sentencing. Chief Accounting Officer Rick Causey was charged with 6 felonies of falsifying Enron’s accounting which he plead guilty of conviction for a 7 year sentencing to prison. Enron CFO Andrew Fastow plead guilty to 2 charges of conspiracy in a plea bargain against Lay, Skilling, and Causey for a conviction and sentencing of 10 years without parole. CFO Andrew Fastow became the primary witness along with other Enron Directors in testifying against 16 other people who plead guilty to various White Collar Corporate Crimes at Enron.

Enron’s shareholders lost 74 billion. Enron owed 67 billion to creditors, shareholders, and employees. Enron was ranked at 5th of Fortune 500 and 7th largest US Mega-Corporate Economic Institution. Enron will forever be a classic criminology case study of the single greatest White Collar Corporate Criminal Scandal and Bankruptcy in US history for despite prestige of affluent wealth in influencing the world as a economic authority.

In light of the 2007–2008 Economic Recession where Bernie Madoff alone was punished out of innumerable actions of economic and financial Power Elite. Enron and Bernie Madoff prove this revelation true of the United State Capitalist Economic Model. That if Antisocial Power Elitists commit crimes against their fellow social-status of the untouchable Power Elite. The Antisocial Power Elitists will face the absolute law where justice will be served in conviction and sentencing for crimes against their fellow Power Elite.

Sources Cited:

Enron: The Smartest Guys in the Room, Director/Producer Alex Gibney, Magnolia Pictures, Documentary, (2005).

Lecture 11, White Collar Crime. T. R. Young. The Red Feather Institute, (1989)

http://www.critcrim.org/redfeather/crime/011white.html

The Criminology of White Collar Crime, Chapter 10: “General General Strain Theory and White-Collar Crime,” Contributing Writers: Robert Agnew, Nicole Leeper Piquero, Francis T. Cullen. Publisher: Springer New York (2009)

http://link.springer.com/chapter/10.1007%2F978-0-387-09502-8_3)

Enron Fast Facts, CNN Library, CNN, (2016)

http://www.cnn.com/2013/07/02/us/enron-fast-facts/

“The 10 Most Notorious White Collar Crimes,” The Richest, (2014)

http://www.therichest.com/business/the-10-most-notorious-white-collar-crimes/

“10 WHITE COLLAR CRIME CASES THAT MADE HEADLINES,” Staff Writers, Criminal Justice USA, (2011)

http://www.criminaljusticeusa.com/blog/2011/10-white-collar-crime-cases-that-made-headlines/

Enron Scandal, Enron Corporation, Jeffrey Skilling, Kenneth Lay, Andrew Fastow, Wikiepedia Articles, www.Wikipedia.org