The Enron energy company’s case is known as one of the worst financial collapses in the United States. The company's bankruptcy in 2000 caused losses to hundreds of shareholders and the shutdown of one of the world's top accounting firms, Arthur Andersen. More than twenty thousand employees were left without a pension fund. The fall of Enron is not just the result of carelessness or unfortunate coincidence. It is a direct consequence of poor judgment and an endless desire to get as much as possible.

Kenneth Lay, the founder and chairman of Enron, was a businessman. Established in 1985 after the merger of InterNorth and Houston Natural Gas in 1987, the company already faced grave financial problems. Enron suffered a loss of $14 million in its first year of operation. By early 1987, the company's credit rating had fallen dramatically. What was the reason?

The main issue was with Enron Oil, one of the company's divisions. While pretending to sell and produce oil, Enron made deals with non-existent companies. It allowed them to offset the losses of one contract with the profits of another. Using non-existent losses, oil traders have been driving profits from quarter to quarter. These financial frauds and speculation on oil prices have significantly shaken Enron's financial stability and pushed it into debt.

Despite all this, the company convinced Wall Street that the future holds only high, stable profits for them. However, the assurances turned out to be false. Making risky bets, in 1987, Enron found themselves one step away from total ruin. Yet, Ken Lay had no intention of backing down. He claimed this was an isolated slip-up and it would not happen again. The analysts on Wall Street believed him. This lie was just the beginning of Enron's long road, built wholly on deceit and fraud.