Today, Doug Ebenstein and the two former CEOs of Enron, Norman Ebenstein and Jeff Skilling, are in control of the Board of Directors for Enron. As a result of this company’s colossal disaster, a number of people died, not just at Enron but also in the United States.
President and Chairman Enron’s Doug Ebenstein and two other former executives were indicted in connection with the energy market manipulation scandal. Enron’s board also was charged by the government for a failing to take reasonable steps to prevent the huge losses at its newly created company Enron. It is also alleged that Ebenstein and other former executives hid Enron’s massive loss from its shareholders.
The federal prosecutor in Houston claims that Enron’s former executives hid the truth about their decision to raise electricity rates. The increase was so large that Enron was forced to shut down its power generating plant and cut back on other projects to make up for it.
Further, a team of prosecutors working on behalf of the government in Texas is now investigating possible violations of the False Claims Act related to the Iraq War. The team has uncovered cases in which contractors or employees who were paid with taxpayer money did not perform the work and did not receive the compensation that they are entitled to.
The company’s former “CEO” Norman Ebenstein, is charged with misrepresenting the value of the company and the value of his former employment. It is alleged that Ebenstein’s firm, Simas, Inc., defrauded the U.S. government out of millions of dollars.
Simas’s past records are not perfect. It appears that two of its contractors, Enron and Toll Brothers, were unable to meet their obligations and were sued for fraud in 2020.
But the company’s history is hardly unsavory. It was founded by two of the country’s most successful businessmen, Hugh Simas and Joseph Novak.
Enron was initially formed as Allen George, Inc. – it merged with Toll Brothers in 1996. It developed a strong relationship with its high level of government relations and it helped win a lucrative government contract for a Texas power plant.
After several years, the project was delayed because Toll Brothers and Enron were losing millions of dollars on the project. When the plant project was cancelled, Enron was left with no option but to put the financial books into shambles.
The company’s HRM was one of the most secure in the country. This is largely due to the fact that Ebenstein had no experience running HRM.
During his time as CEO, Enron also had a very busy office of HRM. And it took an HRM director and an HRM analyst to find this.
Since then, Enron has had many employees, managers and executives. They have shown no history of providing excellent work ethics or any evidence of good corporate citizenship.