WhereIsAtlas · Energy

Enron

The Wall Street darling that collapsed in weeks — one of the largest corporate frauds in history

Defunct — Once America's seventh-largest company and a Wall Street darling, Enron collapsed in 2001 after its fraudulent accounting practices were exposed — becoming a byword for corporate greed and one of the largest bankruptcies in US history.

Enron was formed in 1985 and grew into one of America's largest companies, a darling of Wall Street celebrated for its innovation in the energy trading business. To the outside world, it was a model of success, with soaring stock and leaders hailed as visionaries.

But the success was an illusion. Enron was using complex and fraudulent accounting practices to hide billions of dollars in debt from its investors. When a reporter began asking how the company actually made its money, the house of cards collapsed. In late 2001, Enron filed for bankruptcy — one of the largest in American history.

The scandal destroyed Enron's accounting firm, Arthur Andersen, one of the "Big Five" at the time. It also led to new legislation, the Sarbanes-Oxley Act, which imposed stricter rules on corporate accounting and governance. The company's top executives, including CEO Jeffrey Skilling and Chairman Kenneth Lay, were convicted of fraud.

Quick facts

Founded
1985
Peak
One of America's largest companies (7th largest)
The fraud
Complex accounting hid billions in debt
Bankruptcy
Late 2001
Fallout
Destroyed Arthur Andersen
New law
Sarbanes-Oxley Act (2002)
Executives
Skilling + Lay convicted of fraud

Lineage — where the name went

Two pipeline companies merged in 1985 to make Enron, and the tree follows what happened next — the off-books partnerships, the bankruptcy, and the pieces that were sold off.

  1. 1986 — InterNorth, Inc. merged into Enron Corp. (InterNorth was technically the parent; the combined company was renamed Enron in April 1986)
  2. 1985 — Houston Natural Gas merged into Enron Corp. (Houston Natural Gas merged with InterNorth, and the Enron name followed in 1986)
  3. 1986 — Enron Corp. appointed Kenneth Lay (chairman and chief executive)
  4. 2001 — Enron Corp. appointed Jeffrey Skilling (chief executive from February 2001 until he resigned in August)
  5. Enron Corp. appointed Andrew Fastow (chief financial officer until he was dismissed in October 2001)
  6. 1999 — Andrew Fastow created LJM Cayman LP (the LJM partnerships used to keep debt off Enron's books)
  7. Arthur Andersen served under Enron Corp. (Enron's accounting firm; convicted of obstruction in June 2002)
  8. 1997 — Enron Corp. acquired Portland General Electric (the Oregon utility)
  9. 2006 — Enron Corp. sold Portland General Electric (ownership passed to Enron's creditors, and Portland General Electric became independent on 3 April 2006)
  10. 1998 — Enron Corp. created Azurix (Enron's water business)
  11. 1998 — Azurix acquired Wessex Water (Wessex Water became Azurix's core asset)
  12. 2002 — YTL Power International acquired Wessex Water (bought for £1.2 billion, announced on 26 March 2002)
  13. Enron Corp. created Enron Wind Corp. (Enron's wind-power business)
  14. 2002 — General Electric acquired Enron Wind Corp. (the purchase completed on 10 May 2002 and became GE Wind Energy)
  15. 1992 — Enron Corp. created Dabhol Power Company (the Indian power project Enron led, with GE and Bechtel as partners)
  16. 2005 — Dabhol Power Company rebranded as Ratnagiri Gas and Power (the halted plant was taken over as the state-owned Ratnagiri Gas and Power)
  17. 2001 — Enron Corp. acquired by Dynegy (the rescue merger agreed on 9 November 2001 collapsed on 28 November 2001)
  18. Dynegy acquired Northern Natural Gas Company (Northern Natural Gas passed briefly to Dynegy after the bankruptcy and then to Berkshire Hathaway)
  19. 2001 — Enron Corp. created The Chapter 11 filing (filed on 2 December 2001 in the Southern District of New York)
  20. 2002 — The Chapter 11 filing created Sarbanes-Oxley Act (the Sarbanes-Oxley Act was signed on 30 July 2002)
  21. 2004 — Enron Corp. rebranded as Enron Creditors Recovery Corp. (the company that emerged from bankruptcy took the name Enron Creditors Recovery Corp.)

Entities in this tree: Enron Corp. (company, 1986); InterNorth, Inc. (company); Houston Natural Gas (company); Northern Natural Gas Company (company); Kenneth Lay (person); Jeffrey Skilling (person); Andrew Fastow (person); Arthur Andersen (company); LJM Cayman LP (company, 1999); Portland General Electric (company); Azurix (company, 1998); Wessex Water (company); YTL Power International (company); Enron Wind Corp. (company); General Electric (company); Dabhol Power Company (company, 1992); Ratnagiri Gas and Power (company, 2005); Dynegy (company); The Chapter 11 filing (event, 2001); Enron Creditors Recovery Corp. (company, 2004); Sarbanes-Oxley Act (event, 2002)

Sources

  1. Enron - Wikipedia — Wikipedia (2026-09-04)
  2. Enron's Lay and Skilling guilty — BBC News (2026-09-04)
  3. InterNorth — Wikipedia (2026-09-20)
  4. Enron scandal — Wikipedia (2026-09-20)
  5. Arthur Andersen LLP v. United States — Wikipedia (2026-09-20)
  6. Dabhol Power Company — Wikipedia (2026-09-20)
  7. Sarbanes-Oxley Act — Wikipedia (2026-09-20)
  8. Enron Corp. bankruptcy information — US Bankruptcy Court for the Southern District of New York (2026-09-20)
  9. PGE becomes independent, Oregon-based company today — Portland General Electric (2026-09-20)
  10. GE completes Enron Wind acquisition, launches GE Wind Energy — General Electric (2026-09-20)
  11. Enron's Wessex Water sold to YTL — BBC News (2026-09-20)

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