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The severity of your situation commenced to become evident in mid-2001 as several analysts began to dig into the small print of Enron’s publicly released fiscal statements.

Arthur Andersen also arrived below extreme scrutiny, and in March 2002, the U.S. Division of Justice indicted the firm for obstruction of justice. Clients planning to guarantee buyers that their economical statements could fulfill the very best accounting criteria deserted Andersen for its competitors. They ended up soon followed by Andersen personnel and entire offices.

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Together with the help of Jeffrey Skilling, who was in the beginning a specialist and later grew to become the corporate’s Main running officer, Enron transformed by itself right into a trader of Electricity derivative contracts, acting being an middleman in between all-natural gasoline producers as well as their consumers.

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