All HYIPs are Ponzies

Was Enron a Ponzi scheme?

Was money from new investors paying off old investors? That is my understanding of a Ponzi scheme and I don't see how Enron fits the definition. But I have seen it referred to as a Ponzi scheme in many places.

Public Comments

1. Enron was fraud, on multiple levels.
   
   
   
   Enron manipulated earnings. They would sign a 3-year deal, at say 10 million a month, and record the total value, 360 million, in a month.
   
   
   
   Enron created a number of Special Purpose Entities, or SPEs, which held a lot of debt. These were actually created by Enron to mask its debt. SPEs are supposed to be independent. Eventually the bankers wanted to get paid, and they couldn't juggle accounts any more.