Enron scandal made easy

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Aside from charges of breaching accounting ethics, Enron also has been met head-on with three different charges of white-collar crime. The first charge brought against Enron is Security Fraud. Enron is accused with failing to give correct copies of a IOK report to potential investors and shareholders. A I OK is a financial report that shows the share-worth (earnings per-share), net income and the overall growth or decline of the corporation. The second charge brought against Enron is referred to as insider trading. Former Enron officers have been accused of making $1 billion in Enron stock before officially declaring bankruptcy. In plain terms, Enron executives sold their stock for $1 billion dollars before Enron stock value plunged by keeping their financial status under their hats. The final criminal charge brought against Enron is tax fraud. This offense is usually used when dealing with tax evasion. Enron has allegedly been charged with Federal Bank Fraud, which involves lending information between Enron and the said bank.

Even though Enron has officially declared a Chapter 11 bankruptcy, former Enron employees appear to be financially suffering the most. Enron employees invested much of their savings in Enron stock, which now is worthless. People lost much of their life savings for retirement.

When dealing with a typical 401K plan, it is standard procedure that an employee makes a contribution to his retirement plan that his place of employment usually matches in stock. Enron only supplied their employees with an equal contribution in Enron stock. Under legit circumstances, it is the duty of the employing company to supply its employees with diverse stock options; however, Enron stock was the only stock offered to Enron employees. For the most part, Enron employees were happy with their 401 K plans because Enron stock was growing.

When Enron executives discovered that the financial collapse of their company was inevitable they put a "lock-out" on employee stock, which stopped employees from trading Enron. This "lockout" forced employees to lose half of their retirement pension because of the company's failure.

It has been established that Enron has played a major role in dramatica11y disrupting the lives of its' employees and shareholders, but it has also displayed a negative effect from a political standpoint.

Prior to Enron's collapse, Enron representatives met Vice President Dick Cheney on several occasions to discuss new energy policy. Enron was a major contributor to politicians. Enron gave $1 million to President Bush and contributed heavily to many members of Congress. This is the same Congress that is now investigating Enron.

Two months after one of the world's largest energy traders, Enron Corporation, declared bankruptcy, 20,000 people are out of jobs and out of much of their retirement pension. Kenneth L. Lay, CEO of Enron, has refused to appear before Congress because he feels as though he has already been convicted of the crimes brought against him and another former Enron officer was found dead in bis home last week of an alleged suicide.

*Information explained to by Mary Harris, assistant professor of finance*

Lock to be fixed in Apartment Complex·

DEADLINE: Sept. 16, 2002

FIRST PRIZE: $5,000 Cash Award

A malfunction in the electronic lock system in the Cabrini Apartment Complex has caused the security system to _break down. The doors to the CAC have been propped by tras~ cans since Friday. Public Safety has added extra patrols to the CAC area while waiting for a new part to fix the electric lock system.