Andersen points to errors in Duncan’s testimony

The US Justice Department is relying on a guilty plea from former Enron auditor David Duncan to gain a verdict against the firm.

But the judge told a Houston court she would review what Andersen defence attorneys called ‘fairly voluminous’ errors in Duncan’s statements to FBI agents.

Andersen claims Duncan was bullied into pleading guilty in fear of a threatened 80-year prison sentence that would deprive his three young daughters of a father. After, at first, pleading innocence, he later cut a deal with the government and admitted to illegal document destruction.

If the firm is found not guilty, it could reasonably argue that the government destroyed the firm through vindictiveness and a desire to brush over its own close links to Enron.

The case was scheduled to end by 29 May but now looks likely to last into June.

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