Demise of Enron Corporation and Worldcom

RUNNING: Demise of Enron Corporation and WorldCom

Demise of Enron Corporation and WorldCom

FIN 486

Enron Corporation and WorldCom

In the last decade, two powerful American companies, Enron Corporation and WorldCom, have become the models of accounting corporate fraud. The Enron Corporationwas founded in 1985 by Kenneth Law in Omaha, Nebraska. The company later moved its operation to Houston Texas when InterNorth and Houston Natural Gas merged. This American organization offered paper, pulp, electric, communication, and natural gas manufacturing. Enron employed over 20,000 professionals and reported earnings worth over 100 billion dollars.

A few years earlier, on the other side of the country, WorldCom was established by Bernand Ebbers in...