How did Enron use special purpose entities to hide debt?

First, you'll want to have at least a brief understanding of what a VIE (variable interest entity) and a shell company is. Its also interconnected with tax havens. read more

First, you'll want to have at least a brief understanding of what a VIE (variable interest entity) and a shell company is. Its also interconnected with tax havens. read more

Fastow and others at Enron orchestrated a scheme to use off-balance-sheet special purpose vehicles (SPVs), also know as special purposes entities (SPEs) to hide its mountains of debt and toxic assets from investors and creditors. read more

And that's what Enron did, with an addition of internal revenue booking. During the edge of failure, Enron CEO Jeffrey Skilling had ways to put Enron's financial losses under the carpet. For instance, as Enron was a energy commodity company, it would claim a part of PP&E (property plant & equipment)-power plant-and book it in there profit. read more