Andersen fined $500,000, five-year probation in Enron case

By Our Corporate Bureau | 17 Oct 2002

1
Houston: A federal judge fined accounting firm Andersen $500,000 on yesterday and sentenced it to five years’ probation for obstructing justice in a probe of client Enron.

US district judge Melinda Harmon handed down the maximum sentence to the company, which was considered a paragon of accounting integrity before its disintegration. “I believe a message must be sent to the auditing community that the destruction of documents will not be tolerated while an investigation is ongoing,” Harmon said.

The sentencing comes exactly a year after Enron released a dismal third-quarter earnings report that sparked its rapid spiral into bankruptcy and harsh scrutiny of US corporate accounting practices.

Andersen was indicted in March 2002 after it admitted shredding Enron audit records while a US Securities and Exchange Commission probe into Enron was underway. To the end, Andersen maintained that its employees never had any criminal intent to frustrate federal investigators.

 

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers