Abstract Enron scandals should have taught us a lesson or two on investment fraud. Once a company has filed for bankruptcy act it should not be allowed to go on with normal business activities. Enron was left to still fair on, and it bought some time forge a scam. The government should have foreseen these problems earlier. How did they manage to publish their financial accounting books without thorough auditing? That’s why the Sarbanes-Oxley Act of 2002 was incorporated in the accounting laws to help curb accounting irregularities. Introduction Enron started operating in 1985 as an interstate pipeline company. The company was developed from merging two companies, Houston Natural Gas and Omaha-based Inter North. Kenneth Lay who was the executive director of Houston Natural gas took over Enron chairmanship a year later. In 1999, Enron moved into two fields; Enron online a company website for trading commodities via internet and energy trading company. The company became one of the largest business site in the world and it drew most of the companies income came from trading online. In 2000, Enron experienced tremendous growth in the US of $100 billion of annual revenue. The energy-trading and utilities company traded its stocks at high of $85 and had huge earnings that no one would suspect its fraud, this shocked investors and analysts. It did not show company accounts suspected of hiding its debts and losses and its dealings were very shady which falsely inflated the company’s revenue (BBC NEWS online). In December 2, 2001, Enron scandal deception unfolded, creditors and investors withdrew from the company forcing it to go into bankruptcy. Enron scandal shocked many people since it was the largest company ever in American history. Its growth was so fast, it emerged from nowhere to being the America’s seventh largest corporation in only 15 years of operation. The company employed 21,000 staff and it was operating in more that 40 countries. The company chairman Mr. Lay, was a close ally of the US president Mr. Bush and donated about $2 million to finance his campaigns but when the scandal started coming to light, Bush administration kept its distance. When Securities and Exchange Commission (SEC) began investigating fraud allegation and its irregularities, Enron tried to sell another of its energy company in Houston but it did not succeed in doing so. Enron quickly filed for chapter 11 bankruptcy protections to stop the investigators filing a suit against the company (BBC NEWS online). Jeffrey Skilling, Enron’s president at the time shed some light on the company’s losses of $29 billion on broadband network business. Analyst did not disclose the losses to the public but instead remained deceptive on the matter. Enron’s analyst had conflicting loyalties, they argued on whether publishing the company financial reports that would be useful to investors or offensive to the chief executives. Many people could not understand Enron’s new line of business, but they were still holding on to the good stories being told by the company and the huge profits the company was making. Financial reports in question were hidden by erroneous accounting. In early 2000, Enron considered offer