Investigations with Enron scandals and how it is believed that the top head businessmen and women of Enron swindled money by improper decisions, which could have been avoided. A mix of bad judgments helped stimulate greed to the executives, which caused millions of dollars to be put into their own pockets. The executives provided false information and did not follow proper codes of the federal securities law. It is believed that the money was manipulated to push the blame onto others until the company collapsed and filed for Chapter 11.
"Chapter 11 is the reorganization of the process of correcting or elimination factors responsible for the distress of a business enterprise, thereby preserving both the enterprise and its value as a going concern."(Mann & Roberts. p831) "The Securities Act requires that a registration statement be filed with the Securities and Exchange Commission and that it become effective before any securities may be offered for sale exempt from registration. The Act prohibits fraud in all sales of securities involving interstate commerce or the mails, even if the securities are exempt from the registration and disclosure requirements of the Act."(Mann & Roberts. p.948) .
Enron executives did manipulate the money and make investments for their own benefits. Enron used its power and finances to gain personal wealth and satisfaction until a twist in the plan made everything come to a stop. .
Many lawsuits have been filed against Enron. These lawsuits include lost of pensions and stock for employees seeking repayment. Another lawsuit claims that Enron was involved in fraud while others deal with security laws and contracts. Enron neglected to report profit losses and instead reported profit gains. These reports show agreements made that were nowhere close to the regulated laws where the mishandling of the employees money was being abused leaving many without compensation.