In your text, at the end of Chapter 13, complete the Short Cases: Case 2. This assignment relates to the SEC’s complaint against Ken Lay, et.al (Enron).
Case 2 Enron is a large energy trading company that allegedly committed massive fraud. Enron’s primary method of committing fraud was to record liabilities in related partnerships, then known as special purpose entities, that were not consolidated, or combined, with Enron’s financial statements. Company executives have main-tained that they did not know about these massive off- balance- sheet liabilities, which have been estimated to be several billion dollars. 1. As a fraud investigator, how would you go about finding the existence of these liabilities and partnerships?
After reading the case, answer the following questions as noted in your text:Complete the Internet Assignment at the end of chapter 13 in your textbook:
Read the summary of the SEC complaint against Ken Lay et al. of Enron: http://www.sec.gov/litigation/complaints/comp18776.pdf
Answer the four questions posed relating to this complaint:
- The SEC complaint accuses the defendants of disseminating false and misleading statements through which seven forums?
- How many separate incidents does the SEC complaint identify with Causey, Skilling, and Lay making false and misleading statements?
- How many false or misleading reports does the SEC accuse the defendants of causing to be filed with the SEC?
- Using the SEC’s online EDGAR Database, look up the last false and misleading Form 8-K dated November 9, 2001. Form 8-K is supposed to report significant events that are of interest to public investors; summarize the significant events reported by this particular 8-K (see the six bullets at the beginning of the document
Your essay must be at least 200-300 words in length. If using outside sources all source citation should adhere to the guidelines of the APA style guide.