5 Biggest Stock Scams In Recent Years

2. Enron

The scandal led to the fall of one of the biggest auditing firms in the world as well as one of the biggest energy companies in the United States. While Enron was failing and engaging in failed projects and incurring debts, its accountants used simply engaged in fraud to hide the debt worth billions of dollars, and the CFO was integral in misleading the board as well as pressuring Arthur Anderson, the audit firm and one of the big 5 at the time, to not investigate properly. However, due to the opaque nature of Enron’s disclosures regarding financials, few had the insight to be able to conclusively claim that Enron was engaged in fraud, even as the share price plummeted and the CEO and CFO were ousted. Due to the stock price plummeting and falling confidence, the SEC finally began an investigation, and when all was said and done, both Enron and Arthur Anderson became one of the most infamous examples of big companies failing in the world.