[refurb]

Yup we covered Enron.

It's pretty interesting to study the mechanism of the fraud. Enron did a lot of things, but one of the big ones was how they booked revenue. Since they were a middleman, they should have booked their cut (i.e. fees) as revenue, but rather they booked the entire purchase as revenue, drastically inflating their growth.

[hippich]

If I remember correctly, at that time it was legal to book it this way. Perhaps that was "innovation" that allowed Enron to shoot to the moon?