Choose a time period below to explore the scandal.

1990s

June 1990
Jeff Skilling, who has been a consultant for McKinsey & Co., joins Enron.

June 11, 1991
Enron asks the Security Exchange Commission (SEC) to approve mark-to-market accounting.

Jan. 30, 1992
SEC approves mark-to-market accounting for Enron.

1993
Enron and the government of the state of Maharashtra, India sign a formal agreement to build a massive power plant leading to the formation of the Dabhol Power Company, a joint venture of Enron, General Electric and Bechtel. The cost for construction will soar to 2.8 billion dollars.

January 8, 1996
Enron and the government of Maharashtra reach a new agreement that would shift some of the construction costs and lower the electricity tariffs.

November 1996
Richard Kinder, COO of Enron, doesn’t get CEO job, so he leaves.

December 10, 1996
Enron announces that Jeff Skilling is taking over as COO.

July 1997
Enron executive Rebecca Mark tries to sell 50 percent of Enron International to Shell. But the deal doesn’t get done. She blames Cliff Baxter and Skilling for botching the negotiations.

May 24, 1999
Tim Belden, head of Enron’s West Coast Trading Desk in Portland Oregon, conducts his first experiment to exploit the new rules of California’s deregulated energy market. Known as the Silverpeak Incident, Belden creates congestion on power lines which causes electricity prices to rise and at a cost to California of $7 million. This will be the first of many “games” that Belden and his operation play to exploit “opportunities” in the California market.

June 28, 1999
Enron’s Board of Directors exempts CFO Andy Fastow from the company’s code of ethics so that he can run a private equity fund—LJM1—that will raise money for and do deals with Enron. The LJM Funds become one of the key tools for Enron to manage its balance sheet and make investors think that it is performing better than it is.

September 16, 1999
Enron’s CFO Andy Fastow addresses Merrill Lynch, asking the team of investment bankers to find investors for his LJM2 Fund. He assures them: “If there’s a conflict between Enron and LJM, I will favor LJM.”

October 12, 1999
Enron board exempts Fastow from Enron’s code of ethics so that he can raise money for LJM2.

October 13, 1999
Merrill Lynch releases placement memo for LJM2.

Read about Enron in 2000 >>