How Enron Used Fake Partnerships to Hide $1 Billion in Debt From Investors

Enron was the seventh-largest company in America when it imploded in 2001, wiping out $74 billion in shareholder value and leaving 20,000 employees without jobs or retirement savings. Through a sophisticated web of off-balance-sheet entities and mark-to-market accounting, executives Jeff Skilling and Ken Lay concealed billions in debt and fabricated profits — all while selling their own stock. The collapse brought down auditor Arthur Andersen, triggered the Sarbanes-Oxley Act, and became the defining corporate fraud of its generation — a cautionary tale about what happens when a culture of arrogance and deception goes unchecked.

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