Greatest Tech Scams that CEOs ever Did
By siliconindia   |   Monday, 23 January 2012, 23:48 IST   |    1 Comments
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5. Enron, an energy management company that also provided broadband and streaming services, named the most innovative company in the US for six consecutive times by Fortune, was sustained by a creatively maintained accounting fraud. The company siphoned off its losses to imaginary foreign-based companies. As a result of the company’s scandal, Arthur Andersen which was one of the “big five” accounting firms (that included PricewaterhouseCoopers) lost reputation and never recovered since it had handled Enron’s auditing. Enron went on to file bankruptcy in 2001 but failed, and most of the company’s top executives were jailed, including Jeff Skilling, the former CEO of the company. Skilling was sentenced to 24 years in prison.