Introduction
The world of capitalistic relationships does not reject the intentional manipulations of the top figures in main globally known corporations in order to follow desires of some groups full of personal interests on the assets and profits they can achieve by an illegal way. The examples of bankruptcy are tremendous for the economy of a country where the headquarters of a definite company is situated. Moreover, it definitely reflects on the activity of financial players in Stock Exchanges, and first last and all the time due to the number of shareholders and the influence of a company on the financial stability it can lead to weakening of the national currency.
The possible effect of such global financial disasters is considered by the governments so that not to concede the degree of probability of a corporation’s bankruptcy. This paper is dedicated to the problem of after-bankruptcy oyer and terminer on Cases of former Enron Corporation’s executives.
Enron and its trial
The former well-known corporation Enron was recognized as a bankrupt. There were many reasons for such event, one of which was the violation of current legal policies of the top-management team and board of directors including the official CEO. The situation was critical because of the involvement of many banks and governmental structures in the straightforward activity of the company. The ultimate attitude of law branch was quite uncertain in prospects of extra-ordinary precedent for the economic stability of the United States. “When Enron filed for chapter 11 bankruptcy protection in 2001, the value of much of its debt fell to pennies on the dollar. But hedge funds figured out that recoveries could be made by targeting the banks that worked for Enron.” (The Financial Times, 13, 2009)
Yeager’s Case
The famous trial according to the reasons of Enron’s bankruptcy had a very specific character, as many ways to achieve the truth were trite and had nothing to do with regards to judges and official plaintiff. Thus one of the main figures of this trial was Scott Yeager on whose destiny appeared the vast part of the details about the happened bankruptcy. “The U.S. Supreme Court ruled Thursday that former Enron broadband executive Scott Yeager could not be retried on lingering charges because a jury in 2005 acquitted him of others related to the same alleged scheme.” (The Houston Chronicle, June 2009) The innocence of Scott Yeager was accepted by the Court and the verdict of jury when the retrial process appeared after the main matter which had been adjourned for a period of time.
Howard’s Case
Another person having been convicted in false pretences, Kevin Howard, cannot outlive a crime, but the process of his Case had a facilitating character, because due to the official guidelines about the law procedures prescribed in the Code, he could get a short-term of punishment. Moreover, as Juan A. Lozano states in his article:“Under a plea agreement, Howard could receive up to 12 months of home confinement when he is sentenced on Nov. 2.” (The America’s Intelligence Wire, 2009) This chance was great for him in person, but still left many questions to be unanswered as of the in-text document changes and falsifications.
The Court was also interested in reciprocal activity of former top representatives from Merrill Lynch with the CEO of Enron. The fact that in the year 1999 these persons were the only ones at Court’s disposal to have been caught and accused for the extent of “sale of mobile power plants to their brokerage to help the energy trader appear to meet earnings targets.” (The America’s Intelligence Wire, 2009)
This energetic giant was controlled and made to break down due to a group of people without applying to the help of government and its control over the situation. The losses were great and the parties in fault had such a “formal” economic penalty. “In the Howard case, prosecutors alleged he deprived Enron and its shareholders of his honest services by using the sham deal to fake earnings, contributing to the fraud that eventually led to the company’s downfall in 2001.” (The America’s Intelligence Wire, 2009)
Skilling’s example
The process on different trials and direct Cases seemed to be long-lasting due to the number of personalities which were involved in this terrific economic venture. The famous 5th Circuit could not leave many of the main players in Cases, especially when analyzing the example of former CEO and the person being responsible for guiding the agenda of the corporation, Skilling. The Houston Chronicle while commenting the pros and cons of the official trial stated that “in Skilling’s case, the 5th Circuit ruled he was a CEO who set the agenda, not an underling who carried it out at the behest of superiors like defendants in those other cases. His 19 convictions of conspiracy, securities fraud, insider trading and lying to auditors were affirmed.” (The Houston Chronicle, May 2009)
Conclusion
Still the process is widely discussed due to the economic crisis and effects which it caused. The Enron’s cases of economic and financial manipulations were risky for the country’s sustainability. Because of the great number of people interested in investigation of the Cases many of the points recently became clarified. In particular, the main persons under which commands the corporation declared bankruptcy got their penalties and disregard of the nation and officials.
Works cited
“Enron exec pleads guilty, avoids third trial.” The America’s Intelligence Wire, 2009 p. NA.
“Enron unit executive wins high court ruling Broadband figure can’t be tried again enron: Government loses a second time.” The Houston Chronicle (Houston, TX), 2009 p. 1.
“Hedge funds draw lessons from Enron experience.” The Financial Times, 2009 p. 13.
“High court case may affect Skilling Another’s appeal a good sign for ex-CEO.” The Houston Chronicle (Houston, TX), 2009 p. 6.
“Leaders find new value in the old scriptures: Ethics viewed as good for business, Muslim professor says.” Blade (Toledo, OH), 2009 p. NA.