Enron's Life And Accomplishments Of Kenneth Lay
Enron, the smartest guy in the room
1. Define what you are protecting
Kenneth Lay was born in April 15, 1942, in Tyrone, Missouri, the second of three children of Omer and Ruth Lay. His father was a Baptist preacher in rural Missouri. In addition, he had a chicken business. When Lay was 6, the chicken business was when a large shipment of birds was killed in a truck accident. He learned the value of money early by supplementing the family's meager income by delivering newspapers, cutting grass and baling hay.
Lay studied economics at University of Missouri. He received his Ph. Degree in Economics from the University of Houston. In the late 1960's Lay arrived his first real job, the Houston-based Humble Oil and Refining part of Exxon. Kenneth …show more content…
His parents lived in rural Missouri and his father was minister. In addition his family ran a chicken business. At age 6, his business end ended when the chicken´s truck had an accident. In his early life he worked as a newspaper delivery boy, cut grass and bailed hay in order to help the family´s income.
His ambition to have money in his adult life was motivated by the luxurious life that he did not have when he was child.
Vulnerabilities
Lay ascended from a near poverty family. When he began making money he started to live a luxurios life even when he could not afford …show more content…
He was acused of security fraud. His staff manipulated the stock market. False statements were presented to banks and regulators. He and the accounting firm misreported the real financial information in the statements. In the case Enron was determined to be fraudulent in their price. Kenneth Lay the president and Jeff Skilling the CEO were responsible for misreporting the true state of the financial situation of the company.
8. Defeat the adversary
Lay died at 64 age when he was guilty of six counts of conspiracy and fraud. Kenneth Lay was the highest profile of recent white collar crime trials. When the state widens the net and seeks more indictments against more individuals, defendants apparently become intimidated and are more likely to plead guilty.
In 2000 Enron’s stock was at an all-time high of $90.56
In 2001, one of its division reported $137 million loss. This made analyst worry and drop the rating of Enron´s stock with drop the share to $39.95.
Just few months later the accounting firm Enron to destroy all its financial information.
Security Exchange Commission stated to look the situation and the share drop again. Within a month Enron admitted inflating Enron´s income since 1997. Shortly after, Enron failed for Chapter 11 bankruptcy.
At the beginning of 2002 Criminal investigation was
1. Define what you are protecting
Kenneth Lay was born in April 15, 1942, in Tyrone, Missouri, the second of three children of Omer and Ruth Lay. His father was a Baptist preacher in rural Missouri. In addition, he had a chicken business. When Lay was 6, the chicken business was when a large shipment of birds was killed in a truck accident. He learned the value of money early by supplementing the family's meager income by delivering newspapers, cutting grass and baling hay.
Lay studied economics at University of Missouri. He received his Ph. Degree in Economics from the University of Houston. In the late 1960's Lay arrived his first real job, the Houston-based Humble Oil and Refining part of Exxon. Kenneth …show more content…
His parents lived in rural Missouri and his father was minister. In addition his family ran a chicken business. At age 6, his business end ended when the chicken´s truck had an accident. In his early life he worked as a newspaper delivery boy, cut grass and bailed hay in order to help the family´s income.
His ambition to have money in his adult life was motivated by the luxurious life that he did not have when he was child.
Vulnerabilities
Lay ascended from a near poverty family. When he began making money he started to live a luxurios life even when he could not afford …show more content…
He was acused of security fraud. His staff manipulated the stock market. False statements were presented to banks and regulators. He and the accounting firm misreported the real financial information in the statements. In the case Enron was determined to be fraudulent in their price. Kenneth Lay the president and Jeff Skilling the CEO were responsible for misreporting the true state of the financial situation of the company.
8. Defeat the adversary
Lay died at 64 age when he was guilty of six counts of conspiracy and fraud. Kenneth Lay was the highest profile of recent white collar crime trials. When the state widens the net and seeks more indictments against more individuals, defendants apparently become intimidated and are more likely to plead guilty.
In 2000 Enron’s stock was at an all-time high of $90.56
In 2001, one of its division reported $137 million loss. This made analyst worry and drop the rating of Enron´s stock with drop the share to $39.95.
Just few months later the accounting firm Enron to destroy all its financial information.
Security Exchange Commission stated to look the situation and the share drop again. Within a month Enron admitted inflating Enron´s income since 1997. Shortly after, Enron failed for Chapter 11 bankruptcy.
At the beginning of 2002 Criminal investigation was