Enron : Climax of executive greed and deception
Page entitled :
The Valhalla disaster and Jeff Skilling coming along Enron
Content of this page is about :
How Enron almost went bankrupt because of an oil trading subsidiary and how
Ken Lay came across Jeff Skilling, a bright McKinsey energy consultant.
... the unit’s managing director, Louis Borget, in conjunction with his
treasurer, Thomas Mastroeni, had accumulated liabilities (and losses) in the
market but declared assets and profits in the company’s “cooked” books.
Thanks to these (criminal) practices the traders had received bonuses
totaling $3.1 million in 1985 and $9.4 million in 1986. The investigation,
led by Mike Muckleroy, Lay’s trading specialist, also revealed that the
situation was even worse, as Enron was actually short of 87 million barrels ...