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Non-Tech : The ENRON Scandal -- Ignore unavailable to you. Want to Upgrade?

To: Baldur Fjvlnisson who wrote (3425)	3/12/2002 6:26:47 PM
From: Mephisto	Respond to of 5185

I had hoped the SEC would get more funds. Guess all the money has to be spent to fight future wars!

To: Baldur Fjvlnisson who wrote (3425)	3/12/2002 6:27:30 PM
From: Mephisto	Respond to of 5185

Andersen faces criminal charges Mark Tran Tuesday March 12, 2002 The Guardian US federal prosecutors are threatening to bring criminal charges against Arthur Andersen, the accountancy firm, later this week for obstruction of justice, it emerged today. Prosecutors have set a Thursday deadline for the accountancy firm at the centre of the Enron collapse to plead guilty to the charges, the Washington Post reported. The Post said it was unclear how quickly the US justice department would act if Andersen fails to agree to a guilty plea. Taking a hard line, prosecutors intend to charge Andersen with obstruction of justice for failing to prevent document shredding after the firm learned that Enron's accounting procedures were under investigation. Such a step would be highly unusual, but it reflects the current administration's determination to crack down on corporate abuses after thousands of employees lost their retirement and savings plans, in addition to the millions of investors who lost money when Enron collapsed. Andersen attorneys took the unusual step of approaching the justice department to try and reach a deal instead of waiting for prosecutors to come to them. The firm hoped to reach settlements with all the parties bringing lawsuits against it and sought assurance from the department that it would not face criminal charges, the Post said. Enron, and Andersen's role as its auditor, is the subject of more than a dozen US congressional investigations as well as inquiries by the securities and exchange commission and the justice department. The possibility of criminal charges can only complicate Andersen's efforts to sell itself as a way of ensuring its survival. The company, hit by a defection of big-name clients in recent weeks, has been holding merger talks with rivals Deloitte Touche Tohmatsu and Ernst & Young. A sticking point in any merger would be to fence off the myriad lawsuits Andersen faces from the collapse of Enron. A merger of Andersen with one of its big rivals would also raise monopoly concerns as the Big Five will become the Big Four. guardian.co.uk