In addition he is not allowed to serve as office or directory of a public office company for five years, and he had to pay over nine billions dollars worth of fines. .
In the Rite Aid Corporation scandals, the Executive Philip D. Markovitz "pleaded guilty to obstruct justice in the federal government's investigations of the drugstore chain" (Jackson 52). He is facing five years in prison and a possible two hundred fifty thousand dollar fine. Markovitz's former boss, Timothy J. Noonan whom was the firm's CEO is "expected to receive a probationary sentence because he began cooperating with prosecutors in 2001" (Jackson 52). There are more people whom are involved with this scandal they are also facing up to five years and prison and also a fine of two hundred fifty thousand dollars. .
Although the two cases that were mentioned above were only a tip of the iceburg, no one was doing anything to help the accounting fraud come to and end. Although that was before Enron, the case that made everyone put a stop to the accounting fraud. Enron is the product of two established natural gas companies: InterNorth and Huston Natural Gas. InterNorth was established in the 1930's while through merging and aquiring Huston Natural Gas was established around 1975. The two companies merged 1985, forming Enron. (Law) .
In the years to com Enron become a mega-billion corporation having ties within a multiple number of countries that included: Austalia, Brazil, and the UK. At the same time they were also acquiring portfolio and land in the USA. It wasn't until 2001 when Enron's stock started to deflate. At that time they bought out their minority shareholders and began selling the Assets of one of their companies, Azurix. During that same year they also sold two of their bigger companies to other smaller ones. On Enron's net income statement from 1997 to the first half of 2001 there was an overall 20% reduction.