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It was later discovered that this audit committee did not possess the financial knowledge that could help it sift through financial transactions and records and detect the complex accounting malpractices at the firm. In addition, most members of this committee were on intimate terms with the management and received handsome payments for their services thus it was difficult for them to police the management (Sterling, 2002, p.139). Stock analysts also came under fire for their complicity in the scandal. It is reported that as close as a month to the company's collapse, even after the I billion dollar revision of its net worth and ongoing SEC probes, most analysts were still advising investors to put their money in Enron's stock (Sterling, 2002, p.140).Aware that the company was tottering on its last legs, senior managers of Enron paved their exit paths from the troubled giant by paying themselves hefty amounts of money running into millions of dollars and sold their stocks while they were still valuable (Sterling, 2002, p.140). For example, at the height of its success, the stock was going for $90 a share compared to less than 50 cents a share after news of the company's troubles filtered out. The managers disposed their shares at this high price and made a killing, based on information they knew as insiders in the company, and were therefore guilty of 'insider trading.'(Sterling, 2002, p.140). An example that stands out is that of Linda Lay who disposed half a million shares only minutes before disclosures of the firm's status were made to the public. As they made their fortunes, many investors had their entire lifetime savings wiped out. It is estimated that senior managers such as Kenneth Lay, Jeffrey Skilling, and a few others received about $680 million (Sterling, 2002, p.141).
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