Enron Case
Yuwei Chen
Shiyuan Wang
Description:
1. 1985,Houston Natural Gas merges with InterNorth to form Enron.
2. 1989, Enron begins selling natural gas commodities.
3. 1999, Enron opened a global trading of energy commodities and derivative contract.
4. 2000, Enron reaches No.7 on the Fortune 500 list and the shares price reaches high of $90.
5. Aug. 14,2001, Mr. Skilling resigns as CEO, and Mr. Lay becomes CEO again
6. Aug. 15,2001, Sherron Watkins send a memo to Kenneth Lay about accounting issue.
7. Aug.28, 2001, Margaret Ceconi, wrote a five page memo to Mr, Lay stated about the moving
losses.
8. Jan-Aug, 2001, Mr.Lay and Mr. Skelling sold over $100 million of Enron stock and restricted
employee selling stock from 401K.
9. Oct. 16, 2001, Enron reported a $638 million loss in the third quarter and restated a $1.2
billion reduction in shareholder equity in the past financial statements.
10. Oct. 19, 2001, SEC launches iniquity to Enron finances and opened an investigation into
Enron’s transactions.
11. Oct. 22,2001,SEC asked Enron further explained the information on reported losses.
12. Nov. 8, 2001,Enron files documents with SEC revising its financial statements that they
