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Arthur Andersen indicted for obstruction of justice in Enron scandal (BREAKING AT DRUDGE)
DRUDGEREPORT ^ | 3/14/2002

Posted on 03/14/2002 12:12:00 PM PST by TLBSHOW

Arthur Andersen indicted for obstruction of justice in Enron scandal

NOTHING FOLLOWS YET


TOPICS: Breaking News; Business/Economy
KEYWORDS: arthurandersen; enron; enronlist; globalcrossing; warlist; weaselslist
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1 posted on 03/14/2002 12:12:00 PM PST by TLBSHOW
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To: TLBSHOW
The announcment is being made at a press conference at the Justice Department right now.
2 posted on 03/14/2002 12:12:45 PM PST by Pyro7480
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To: TLBSHOW
Excellent. Now, how about a number of Enron corporate executives!
3 posted on 03/14/2002 12:13:55 PM PST by DoughtyOne
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To: DoughtyOne
Now, how about a number of Enron corporate executives

Does anyone even know where they all are? The last time I read anything on this, several were "unable to be reached".

4 posted on 03/14/2002 12:16:09 PM PST by kassie
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To: DoughtyOne
How about Clinton being indicted along with Andersen. That would be a miracle.
5 posted on 03/14/2002 12:18:02 PM PST by TLBSHOW
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To: TLBSHOW
My, that was FAST! It shows the DOJ can move when it wants to.

How about an Obstrcution Of Justice indictment against Clinton. That is certainly way overdue!!

6 posted on 03/14/2002 12:18:39 PM PST by Gritty
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To: TLBSHOW
The Associated Press
Thursday, March 14, 2002; 4:08 PM

WASHINGTON –– A federal grand jury on Thursday indicted the Arthur Andersen accounting firm in the Enron Corp. scandal, the first criminal charges in the nation's biggest bankruptcy.

The one-count indictment alleging obstruction of justice came after Andersen spurned a 9 a.m. Thursday deadline to plead guilty to charges stemming from its admitted destruction of Enron-related documents. Andersen said criminal proceedings were tantamount to a "death penalty" against the firm, and it accused the Justice Department of "a gross abuse of governmental power."

For a one-month span in October and early November, "Andersen ... did knowingly, intentionally and corruptly persuade" employees to "alter, destroy, mutilate and conceal" documents, the indictment said

7 posted on 03/14/2002 12:18:43 PM PST by StarFan
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To: TLBSHOW
Pull over. . .NOW! ! !



8 posted on 03/14/2002 12:21:33 PM PST by MeekOneGOP
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To: DoughtyOne
The Enron internal polling is flatlining on the democrats, according to the American Spectator...democrats are playing a losing hand here.
9 posted on 03/14/2002 12:22:20 PM PST by codebreaker
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To: StarFan
Good God. They ordered their employees to destroy documents, and they are whining that the justice department is out to get them. Unbelieveable.
10 posted on 03/14/2002 12:22:25 PM PST by Rodney King
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Comment #11 Removed by Moderator

Comment #12 Removed by Moderator

To: TLBSHOW
now someone explain how to put a partnership in jail after "it" is convicted!. wouldn't it make more sense to indict an individual or group of individuals? more nonsense from the federal government.

regards - red

13 posted on 03/14/2002 12:24:26 PM PST by rednek
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To: StarFan
The press has aledged that AA has provisionaly prepared a Chapter 11 bankruptcy filing for this sort of death sentance. If so, it will be announced within hours.
14 posted on 03/14/2002 12:24:41 PM PST by KC Burke
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To: seamole
Arthur Andersen Indicted

Thu Mar 14, 4:09 PM ET

WASHINGTON (AP) - A federal grand jury on Thursday indicted the Arthur Andersen accounting firm in the Enron Corp. scandal, the first criminal charges in the nation's biggest bankruptcy.

The one-count indictment alleging obstruction of justice came after Andersen spurned a 9 a.m. Thursday deadline to plead guilty to charges stemming from its admitted destruction of Enron-related documents. Andersen said criminal proceedings were tantamount to a "death penalty" against the firm, and it accused the Justice Department (news - web sites) of "a gross abuse of governmental power."

For a one-month span in October and early November, "Andersen ... did knowingly, intentionally and corruptly persuade" employees to "alter, destroy, mutilate and conceal" documents, the indictment said.

http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020314/ap_on_bi_ge/enron_investigation_823

15 posted on 03/14/2002 12:25:14 PM PST by TLBSHOW
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To: TLBSHOW


Andersen indicted in Enron scandal
Andersen indicted in Enron scandal

03/14/2002

Associated Press

WASHINGTON – A federal grand jury today indicted the Arthur Andersen accounting firm in the Enron Corp. scandal, the first criminal charges in the nation's biggest bankruptcy.

The one-count indictment alleging obstruction of justice came after Andersen spurned a 9 a.m. Thursday deadline to plead guilty to charges stemming from its admitted destruction of Enron-related documents. Andersen said criminal proceedings were tantamount to a "death penalty" against the firm, and it accused the Justice Department of "a gross abuse of governmental power."

For a one-month span in October and early November, "Andersen ... did knowingly, intentionally and corruptly persuade" employees to "alter, destroy, mutilate and conceal" documents, the indictment said.

Andersen employees "were instructed by Andersen partners and others to destroy immediately documentation relating to Enron and told to work overtime if necessary to accomplish the destruction," said the indictment.

Andersen employees engaged in "the wholesale destruction" of Enron-related materials, Deputy Attorney General Larry Thompson said.

The Justice Department brought Andersen under close scrutiny following the accounting firm's admission that it had engaged in massive shredding of Enron-related documents as the energy trading company careened toward bankruptcy last fall. Just before the shredding began, the Securities and Exchange Commission had announced it was conducting an inquiry of Enron.


Online at: http://www.dallasnews.com/latestnews/stories/031403dnbusenroninvestigation.8aedf.html

16 posted on 03/14/2002 12:26:38 PM PST by MeekOneGOP
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To: kassie
Good question.
17 posted on 03/14/2002 12:26:41 PM PST by DoughtyOne
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To: TLBSHOW
Now that would be nice.
18 posted on 03/14/2002 12:27:09 PM PST by DoughtyOne
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To: DoughtyOne
Also, Global Crossings.
19 posted on 03/14/2002 12:27:29 PM PST by Corporate Law
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To: codebreaker
I think that's why we've heard very little about it in recent days. Dang, poor boys can't find a core issue to pound Bush over. I'm sure they'll keep trying.
20 posted on 03/14/2002 12:28:33 PM PST by DoughtyOne
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To: TLBSHOW
How about Clinton being indicted along with Andersen. That would be a miracle.>>

This is not Disney World...

21 posted on 03/14/2002 12:31:07 PM PST by My Favorite Headache
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To: DoughtyOne
Exactly!! This only opens a can of worms!
22 posted on 03/14/2002 12:32:00 PM PST by RoseofTexas
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To: DoughtyOne
andersen News Story Matches 1 - 20 of 337
23 posted on 03/14/2002 12:32:10 PM PST by TLBSHOW
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To: rednek; Tuco-bad
"now someone explain how to put a partnership in jail after "it" is convicted!. wouldn't it make more sense to indict an individual or group of individuals? more nonsense from the federal government."

Indicting the company means that Andersen is now FORBIDDEN from performing the SEC audits of all public (read: Fortune 5000) American companies. It should also get Andersen tossed from its government auditing contracts (e.g. at the FBI).

Now we just have to see how much of its assets that Andersen can illegally transfer off-shore before the lawsuits and damages eradicate the company.

And of course, whether any of this impacts Andersen Consulting (aka Acenture) financially...

Andersen is dead. Frankly, it lived too long, anyway. It was corrupt for years.

24 posted on 03/14/2002 12:33:51 PM PST by Southack
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To: TLBSHOW
Fox News predicated/indicated that this would happen this morning during their business blips.

Also, the second shoe will be dropping on AA probably this week. The SEC may say that AA is not capable of correctly handling audits of its clients! Clients are running away from AA faster than world class sprinters at the Olympics.

Watch the rats in the senate like LIEberman and Hollings drop Demron gate like a hot coal and run away from it.

The house will be investigating Double Crossing or Global Crossing very quickly! Of course CNBCNBCCBSCNNABCCSPAN will run away from covering this story. The NY and LA Slimes will cover Double Crossing and try to blame it on the repubies. The Washington Compost will lie about as it does in every story!

Will AA take the poison pill this month or will it last to Memorial Day?

25 posted on 03/14/2002 12:33:54 PM PST by Grampa Dave
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To: rednek
Documents were shredded. The oveall managing partners of the entire LLC notified the government of that when they became aware that it had occurred in the offices of the Houston Partners of the LLC (the Engaging Partners / Partners in Charge).

It was alleged in their defense that the main office had sent a memo reminding the Houston Partner's office that the Document Retention Policy of AA called for (1) Work/Preliminary Documents be disposed of and (2) Final Documents and workpaper versions be retained and (3) if a legal inquiry was proceeding to preserve all documents that might be called for by law (my paraphrase). No the Main Office felt that such action showed their willingness to prevent destruction of evidence. The government contends (IMHO) that the Policy memo was a back-handed way of telling the branch office to "clean their house" of incriminating evidence.

The signifigance of the LLC being charged and not just a partner is that such would bar AA as a whole from conducting Audits needed for SEC filings -- i.e., puts them out of business absent an SEC waiver which stops only the Houston office. But you see, SEC wants to maintain a deep-pocket reservoir to go after for media results and doesn't want to let the whole company off the hook. Justice doesn't want to worry about the actual culprits cause that could shield the deep pockets/ big-trophy of the whold firm being charged so they name the entire firm first....more headlines.

Hell, the Enron CFO who perpetrated this whole shebang hasn't been charged....might as well put an arrogant ol' line Audit firm out of business....

I'm just a tad bitter about this whole thing though......after all we just spent 8 years with a criminal conspiracy in the executive being ignored by 80% of government and all of the media......but, hey, its a big-business, oil croney, Republican in office, doncha know.... gotta protect those 401k fools

26 posted on 03/14/2002 12:40:59 PM PST by KC Burke
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To: TLBSHOW
Clinton being indicted

keep smoking

27 posted on 03/14/2002 12:43:31 PM PST by alrea
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To: TLBSHOW

28 posted on 03/14/2002 12:44:21 PM PST by antaresequity
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To: RoseofTexas
Exactly!! This only opens a can of worms!

This is gonna be good...they [congress] are gonna find out that the whole tapestry includes them....I wouldn't be surprised if this mess is shoveled out the back door like a big pile of stinking dog crap

29 posted on 03/14/2002 12:48:57 PM PST by antaresequity
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To: all; registered
If you plan to eat at the Arthur Andersen Flaming Restaurant, you had best come quick. Their speciality of the house, flambe books, may soon be history!

Thanks to Registered for sharing this slice of his talent with us!

30 posted on 03/14/2002 12:49:47 PM PST by Grampa Dave
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To: KC Burke
after all we just spent 8 years with a criminal conspiracy in the executive being ignored by 80% of government and all of the media......but, hey, its a big-business, oil croney, Republican in office, doncha know.... gotta protect those 401k fools

message: Stealing is fine if you make sure you say you are liberal, a Democrat or in the legal profession.

31 posted on 03/14/2002 12:50:10 PM PST by alrea
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To: TLBSHOW
(Nelson from The Simpsons voice): HA HA!!.
32 posted on 03/14/2002 12:51:16 PM PST by Clemenza
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To: StarFan
Anyone who buys the crap that Arthur Anderson's top brass didn't know about what was going on is nuts.

The fact is Enron was doing a giant scheme that could not ever work. The company started out as a stodgy but profitable oil and gas company. Then it started dealing in energy futures. They didn't call em futures, but Arthur Andersons management had to know that is what they were.

The futures business is at at best a 4 percent return business. It is legit and there is nothing wrong with those that go into it. What is wrong is when a futures company starts playing the futures. That is a prescription for going broke. But they guessed right for a while and for a while made big returns. They felt they had invented a new way to make money. But when the market fell they lost it as fast as they has made it. Like many before them they tried to cook the books until their "luck" changed.

Anderson was surely to be aware they were helping people cook books. An accounting firm that can't tell when people are cooking the books is negligent indeed.

Arthur anderson reminds me of the bank guard who was on duty when the bank was robbed. His excuse for not preventing the robbery, was he was taking his afternoon nap when the robbers showed up.

Arthur anderson's top people were in on the rip off, or they were taking nap when the books were a being kept.

33 posted on 03/14/2002 12:51:28 PM PST by Common Tator
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To: TLBSHOW
Remember how in school some of us were taught that financial statements from the big firms were "as good as gold?"
34 posted on 03/14/2002 12:52:47 PM PST by Clemenza
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To: MeeknMing
"Andersen ... did knowingly, intentionally and corruptly persuade" employees to "alter, destroy, mutilate and conceal" documents, the indictment said.

Hillary Clinton should be sweating

35 posted on 03/14/2002 12:53:21 PM PST by alrea
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To: Southack
Thanks for posting this and clarifying what SEC's action would be if AA was indicted: Indicting the company means that Andersen is now FORBIDDEN from performing the SEC audits of all public (read: Fortune 5000) American companies. It should also get Andersen tossed from its government auditing contracts (e.g. at the FBI).

Do you feel that this is the end of AA?

36 posted on 03/14/2002 12:56:58 PM PST by Grampa Dave
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To: Grampa Dave
Accounting firms should be forced to run live web cameras on every paper shredder that they own, filming the faces of every person who tries to shred documents (along with a date and time stamp).
37 posted on 03/14/2002 12:59:58 PM PST by Southack
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To: Southack
Plus, making digital copies of everything before they are shredded, which are sent by satellite to a safe storage site!
38 posted on 03/14/2002 1:04:00 PM PST by Grampa Dave
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To: KC Burke
Hell, the Enron CFO who perpetrated this whole shebang hasn't been charged....might as well put an arrogant ol' line Audit firm out of business....

If an accounting firm does not want to go to jail for being an accounting pimp, He had best not keep the books for the ho house.

I had a major accouting firm tell to me, I could do something I was not sure I could. I said, "If you are wrong, you are in a lot of trouble." Being an honest accountant he said ,"No when an accountant is wrong it is the client that is in a lot of trouble."

Perhaps Bush is putting the shoe on the right foot. If accountants are paid the big bucks, and sign off on stuff that turns out to be illegal, they should pay the price.

Anderson is history. It will be a very long time before another accounting firm pulls somthing this stupid or illegal in order to get a big hunk of short term money.

39 posted on 03/14/2002 1:04:46 PM PST by Common Tator
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To: seamole
Thanks for all of your great indexing work.

There is so much coming down and bubbling out on so many critical subjects, we need great indexers like you, Shermy and Ernest at the Beach (I'm sure that I have omitted at least 100 good indexers) to help us keep track of all of this stuff.

40 posted on 03/14/2002 1:06:25 PM PST by Grampa Dave
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To: kassie
I bet those white men are SOOOOO arrogant that they haven't even left for Switzerland.
41 posted on 03/14/2002 1:06:36 PM PST by japaneseghost
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To: TLBSHOW
It is too bad they can only be fined $500,000. They should be closed down for ever!
42 posted on 03/14/2002 1:06:46 PM PST by makoman
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To: Common Tator
Love that post!

By the way, I had a CPA business math professor tell me to
ALWAYS record conversations with accountants and lawyers.

They tell you how to avoid taxes, you do the bad thing thinking the accountant or lawyer
will take the fall for you, but NO, unless you have proof they gave you such advice.

record the sucker, even if it's illegal

43 posted on 03/14/2002 1:11:39 PM PST by japaneseghost
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To: TLBSHOW
>Arthur Andersen indicted for obstruction of justice in Enron scandal

These Enron/Andersen stories would really be pepped up if someone could just get the FBI to start "accidently" shooting some of the executives...

Mark W.

44 posted on 03/14/2002 1:13:32 PM PST by MarkWar
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To: all
As ususal the blood hound Freepers have been all over the Arthur Andersen case going back to last year.

You might want to take a few minutes to see what has been documented and discussed re Arthur Andersen by your fellow Freepers on Free Republic.

There is probably a great story here if any fish wrap had honest reporters, editors and publishers.

(Freeper Threads and Replies on Arthur Andersen)

Seamole may have even more indexing on this incredible story!

45 posted on 03/14/2002 1:16:06 PM PST by Grampa Dave
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To: Southack
Are you sure they can no longer audit SEC companies??? Where did you hear this?
46 posted on 03/14/2002 1:26:27 PM PST by cactmh
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To: rednek
now someone explain how to put a partnership in jail after "it" is convicted!. wouldn't it make more sense to indict an individual or group of individuals?

My thought exactly! Can any Freeper legal experts tell us how a corporation can be criminally liable, not the officers who were actually responible?

47 posted on 03/14/2002 1:39:54 PM PST by Hugin
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To: Southack
Andersen is dead. Frankly, it lived too long, anyway. It was corrupt for years.

Hey Southack - You're no FUN anymore.

We have been agreeing too much lately.

BTW - Arthur Andersen is the real culprit in the Enron mess, as CPA firms are mandated to protect the PUBLIC.

48 posted on 03/14/2002 1:42:03 PM PST by Tuco-bad
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Comment #49 Removed by Moderator

To: Rodney King
Arthur Andersen is an LLP with 85,000 employees in 90 countries. A handful of crooked partners in Chicago ordered any document destruction. Should the DOJ take steps to knowingly destroy this business and the livelihoods of 85,000 people just to provide running cover for the Clinton Administration's complicity in Enron? I know, how about we nuke every city where Andersen maintains an office, just to be sure.
50 posted on 03/14/2002 1:55:19 PM PST by Melinator
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