1. Fraud
... compensation. As part of the capitalization of an entity designed to hedge an investment Enron held in a bankrupt broadband company, a $1.2 billion entry was made to Enron's books to increase notes receivable and shareholder's equity. When these hedging arrangements were terminated to avoid having to issue more than 58 million shares of its" own stock, Enron recorded a loss ... Scrushy and HealthSouth with Massive Fraud). It is estimated that the overstatement amounted to $1.5 billion between 1999 and the second quarter of 2002. Intent on meeting Wall Streets earnings estimates, Mr. Scrus...
- Word Count: 2557
- Approx Pages: 10
- Grade Level: Undergraduate