Enron was an energy company that began trading heavily in the energy derivatives markets.
The company hid huge trading losses, which eventually led to one of the biggest accounting scandals and bankruptcy in recent history.
Enron executives used fraudulent accounting practices to inflate the company’s earnings and hide the debts of its subsidiaries.
The US Securities and Exchange Commission, rating agencies and investment banks have also been accused of negligence, and in some cases outright deceit, which contributed to the fraud.
As a result of Enron, Congress passed the Sarbanes-Oxley Act to make corporate executives more accountable for their company’s financial statements.
Black money includes all funds earned as a result of illegal activities, as well as other legitimate income that is not taken into account for tax purposes.
A boiler room is a scheme in which sellers use high-pressure selling tactics to persuade investors to buy securities, including speculative and fraudulent securities.
Channel stuffing refers to the practice of a company supplying more products to distributors and retailers through a distribution channel than end users can purchase in a reasonable amount of time.
The Depository Trust and Clearing Corporation (DTCC) is a financial services company that provides clearing and settlement services for financial markets.
An Export Trading Company (ETC) deals with exports for clients, focusing on all legal requirements and regulations that a company must follow before a country will allow its goods to be exported.
A High Yield Investment Program (HYIP) is a fraudulent investment scheme that aims to generate extremely high returns in excess of 100% on investments.