Enron used partnerships and aggressive accounting to hide debt. After a $1.01 billion charge, a $591 million restatement and a junk rating, it filed for bankru…
Judge Sim Lake cut Jeffrey Skilling's sentence from 24 years 4 months to 168 months under a deal with prosecutors. He was released on 21 February 2019.
The Sarbanes-Oxley Act created the PCAOB, required CEO and CFO certification of reports and restricted some auditor services.
The Supreme Court unanimously reversed the obstruction conviction over faulty jury instructions. It did not find Andersen's conduct proper.
A Houston jury convicted Kenneth Lay on six counts and Skilling on 19 of 28. Lay died on 5 July and his conviction was vacated on 17 October.
A jury convicted Andersen of obstruction over document destruction. It gave up its audit licences on 31 August 2002.
Enron filed for Chapter 11 on 2 December 2001 with $63.4 billion of assets, after a junk rating on 28 November ended the Dynegy rescue.
Enron's Form 8-K cut 1997-2000 net income by $591 million and added debt from JEDI and Chewco back to its books.
Jeffrey Skilling resigned on 14 August 2001. Sherron Watkins warned Kenneth Lay about the accounting the same week.
Enron's CFO ran the LJM partnerships while working at Enron, creating conflicts that investigators later examined.
Houston Natural Gas and InterNorth voted to merge, creating the company later called Enron.
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