The Crimes of Ken Lay
Ken Lay, through the ENRON Corporation, was responsible for the loss of upwards of $70 billion; this figure, which is estimated by a multitude of both historians and economists alike, is said to include $70 billion embezzled from investors and upwards of $2 billion misappropriated from both the board, as well as the trustees of the ENRON Corporation – Ken Lay is recognized as being responsible for the disposal of pension plans, stock options, and retirement funds initially allotted to the employees and trustees of ENRON.
The following crimes undertaken by Ken Lay and other ENRON executives led to the ENRON scandal, which is considered to be amongst the most notorious financial scandals taking place within the history of the United States:
Ken Lay – in addition to a variety of ENRON executives – engaged in fraudulent operations within which investment capital is unlawfully wasinternally-distributed in a deceptive fashion. Ken Lay employed tactics of misrepresentation as a means to project the illusion of financial gains resulting from investment endeavors; typically, the investment capital of newer clients was misappropriated and proportioned to existing clients with the hopes of instilling confidence in the ENRON’s solubility.
Investor Misrepresentation undertaken by Ken Lay was achieved through the production of fraudulent earnings reports reporting deceitful and fallacious figures with regard to gains rendered through investments; as Ken Lay continued to embezzle incoming monies resulting from investments, ENRON continued to fabricate earnings in order to substantiate the multitude of funds for which were unaccounted.
Ken Lay conducted a majority of his fraudulent activity undertaken in order to mask the theft that was occurring through the utilization of electronic, computational facilities in order to transfer money embezzled to clandestine destinations where it would remain undiscovered.