A financial scandal occurs when individuals or organizations engage in unethical or illegal activities that undermine financial integrity. These activities can include fraud, embezzlement, insider trading, or accounting manipulation. Such scandals often lead to significant financial losses for investors and can damage the reputation of the involved parties, including companies and their executives. The fallout from a financial scandal can result in legal consequences, including fines and imprisonment for those responsible. Additionally, affected companies may face a decline in stock prices and loss of consumer trust. High-profile cases, such as the Enron scandal, serve as reminders of the importance of transparency and ethical behavior in finance.