Andersen Grand Jury Should
Proceed -DOJ
Thu Mar 28, 8:37 PM ET
By C. Bryson Hull
HOUSTON (Reuters) - The Justice Department web sites) said on Thursday it had impaneled a new
grand jury to investigate Enron and Andersen, arguing
the shattered accounting firm has no right to stop it
from going forward despite already being indicted for
obstruction of justice.
The information, which came in
court papers filed late on Thursday,
raises the possibility that more
criminal charges against Andersen
or its employees could be
forthcoming soon.
The government's motion, in response to Andersen's
request that U.S. District Judge Melinda Harmon throw
out subpoenas for four employees, says a special grand
jury was impaneled on Wednesday to investigate crimes
related to the Enron collapse.
Andersen is facing a felony obstruction of justice trial
for allegedly destroying Enron documents after learning
of a U.S. Securities and Exchange Commission (news -
web sites) investigation into the then-failing Houston
energy trader.
"The government's primary purpose in calling witnesses,
including Andersen personnel, before the Enron grand
jury is to investigate potential crimes of additional
defendants," and Andersen, it says.
Andersen, in its motion filed on Monday, argued the
government was trying to gain an unfair advantage and
has no right to use the grand jury to collect evidence to
prepare for the trial, which is set for May 6.
Case law generally prohibits the government from
calling a grand jury solely to add new evidence to an
existing indictment. But if the inquiry yields new
information against the indicted defendant, the
government is allowed to use it, it said.
"Only a clear showing of abuse allows a court to take the
extraordinary step of interfering with a grand jury
inquiry," the motion says. "This showing Andersen has
woefully failed to make."
Andersen attorneys did not return a call seeking
comment.
Any charges against Andersen or its employees that
arise from the secret investigative panel's inquiry would
likely be included in a superseding indictment in the
obstruction case.
Harmon has not said when she will rule on whether to
throw out the subpoenas. One Houston criminal defense
attorney said he thought Andersen's chances of success
were slim, given the broad discretion the government
has in using the grand jury.
"All the government has to say is that they are
continuing to investigate to see if anyone else is
committing crimes," lawyer Kent Schaffer said.
He said Andersen attorney Rusty Hardin was obligated
to try and stop the subpoenas.
"Is he going to succeed? I'd be shocked," he said.
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