BusinessCompany NewsAndersen gets maximum fine over Enron

Andersen gets maximum fine over Enron

The US arm of disintegrating firm Andersen has been sentenced to five years of probation and a fine of $500,000 for obstruction of justice related to its work at collapsed energy giant Enron.

Link: Andersen special report

Link: The Enron saga

The punishment was the maximum allowed under law. Lawyers for the firm have said they will appeal the ruling.

The order against Arthur Andersen LLP handed down by federal prosecutors means the firm faces more fines and extended probation if the firm violates terms handed down by US District Judge Melinda Harmon.

The firm is now just a shell of its former self, with just 1,000 of its original 28,000 staff remaining on the payroll. It has also ceased to perform any audit work in the US, after having its auditing license withdrawn earlier this year. The majority of its global network of firms has been sold off to former Big Five rivals, now known as the Big Four.

Andersen was accused of shredding Enron-related documents last year to thwart a US Securities & Exchange Commission accounting probe. The nail in the coffin for Andersen came in May when former lead auditor, David Duncan, who headed up the Enron audit in Houston, admitted that documents relating to the energy company had been shredded.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor