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What concerns did Sherron Watkins raise in her memo to Kenneth Lay?
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Enron scandal
The Enron logo outside the company's headquarters, Houston.
In her memo to Kenneth Lay, Sherron Watkins, an Enron vice president, expressed significant concerns regarding the company's use of special purpose entities (SPEs) managed by chief financial officer Andrew Fastow. Watkins warned that these partnerships and the company's questionable accounting practices could lead to potential accounting scandals.1