Search Box


Advanced search

Arthur Andersencorruption, Arthur Andersen, Justice, Enron's financial statements, Whistle blowers, destroyed documents, Jury, witness, tampering, Enron, indictment, SEC, Connecticut, CRRA

To my cites      Back to business      Corporate corruption

On March of 2002 Andersen (An accounting firm) was in indicted for obstructing of Justice because it shredded documents that had information on Enron's financial statements (1 ).

Whistle blowers might not welcome at Arthur Andersen. Carl E. Bass was removed from his Enron Advisory role just weeks after he questioned things he found in Enron accounts. Enron's chief accounting officer, Richard A. Causey met with Andersen chief executive Joseph F. Berardino and two other officials on Feb. 21, 2001. To discuss the treatment of Enron's account. Three weeks later he was removed from Enron's account(2 ).

In 2002 Texas Jury found Andersen guilty of "witness tampering" in connection with its destruction of Enron documents weeks before the Securities and Exchange Commission (SEC) Started a probe of the Energy firm (3 ).

An indictment federal officials charged that Andersen partners who were assigned to audit Enron on October 23, 2001 started a "a wholesale destruction of documents" at Andersen's offices in Houston, Texas (4 ).

In an indictment filed in 2002, federal officials alleged that on October 23, 2001, Andersen partners assigned to the Enron audit launched "a wholesale destruction of documents" at Andersen's offices in Houston, Texas. According to the indictment "Andersen personnel were called to urgent and mandatory meetings," the indictment also said "Instead of being advised to preserve documentation so as to assist Enron and the SEC, Andersen employees on the Enron management team 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." (5 ).

Not related but the same

Connecticut's Attorney General Richard Blumenthal, said Arthur Andersen destroyed documents that were connected with a 220 million loan by Connecticut's garbage-disposal agency and they also obstructed justice(6 ).

Blumenthal said "Our fact-finding thus far indicates that it has systematically and persistently destroyed documents, thereby obstructing justice, including our investigation and our effort to recover money for the state of Connecticut lost through the massive fraud that was enabled by its wrongdoing," and continued "We have found that Arthur Andersen has essentially enabled Enron to do transactions off the books, to disguise liabilities and conceal debt, to inflate assets and exaggerate its income in a way that deceived investors countless, innocent investors, including the pensions funds of the state of Connecticut and our quasi-public agency, the CRRA,"(7 ).

corruption, Arthur Andersen, Justice, Enron's financial statements, Whistle blowers, destroyed documents, Jury, witness, tampering, Enron, indictment, SEC, Connecticut, CRRA