Andersen was indicted on March 14, 2002 for obstruction of justice on the grounds that it knowingly, intentionally and corruptly persuaded its employees to shred Enron-related documents.

Did Arthur Andersen violate the law?

In a unanimous decision, the U.S. Supreme Court recently reversed Arthur Andersen's criminal conviction for violating a federal witness tampering statute by encouraging its employees to shred Enron documents pursuant to a document retention policy.

What was the Arthur Andersen scandal?

On June 15, 2002, Andersen was convicted of obstruction of justice for shredding documents related to its audit of Enron, resulting in the Enron scandal. Although the Supreme Court reversed the firm's conviction, the impact of the scandal combined with the findings of criminal complicity ultimately destroyed the firm.

What brought down Arthur Andersen?

By 2002, all of the trust and glory came tumbling down. That June, Andersen was convicted of obstruction of justice for shredding documents related to its audit of Enron, resulting in what infamously became known as the Enron scandal. 3 Even the Securities and Exchange Commission (SEC) did not emerge unscathed.

What caused Arthur Andersen to go out of business and what happened to them what are they known as today?

The Chicago-based company was convicted in June of obstruction of justice for shredding and doctoring documents related to Enron audits. Afterward, Andersen told the Securities and Exchange Commission it would cease auditing public companies. It already had given up its license to practice in several states.

Why did Arthur Andersen shred papers?

The Justice Department said Andersen offices in Houston, Chicago, London and Portland, Ore., worked overtime to shred and destroy documents that the Securities and Exchange Commission was seeking in its probe of Enron's accounting problems.

What were the criminal charges brought against Arthur Andersen?

Arthur Andersen was Enron's accountant prior to its 2001 collapse. In June 2002, a federal jury in Houston convicted the accounting firm of obstruction of justice for destroying Enron-related documents after being notified of a federal investigation into accounting irregularities and fraud inside the energy company.

Did anyone from Arthur Andersen go to jail?

In previewing the obstruction of justice trial of the Arthur Andersen accounting firm, CBSNews.com Legal Analyst Andrew Cohen explains why a plea deal couldn't be reached.

What were the consequences for the top Enron executives who were found guilty?

Lay, 64, was convicted on all six counts against him, including conspiracy to commit securities and wire fraud. He faces a maximum of 45 years in prison. Lay also faces 120 years in prison in a separate case. Lay posted a $5 million bond secured with family-owned properties at a hearing following the verdict.

What was Arthur Andersen role in Enron?

Throughout these years, Arthur Andersen served not only as Enron's auditor but also as a consultant for the company. In February 2001 Skilling took over as Enron's chief executive officer, while Lay stayed on as chairman. In August, however, Skilling abruptly resigned, and Lay resumed the CEO role.

Did Arthur Andersen contribute to the Enron disaster?

Arthur Andersen (AA) contributed to the Enron disaster when it has failed to the management by failing to have Enron establish and enforce its own internal control.

Why did the Supreme Court overturn Arthur Andersen?

The Supreme Court overturns the conviction of the accounting firm Arthur Andersen. The company had been convicted of instructing employees to shred documents, hindering an investigation of Andersen's role at Enron Corporation.

Why Arthur Andersen fail to flag Enron?

The material and pervasive misstatements throughout the financial report indicates that Arthur Andersen inadequately performed their substantive tests, as Enron's equity and profit were both overstated. Enron was inherently unstable and had lacked effective internal controls that were both undetected by the auditor.

Which Enron executives went to jail?

Andrew Fastow, former CFO

Fastow, seen as one of the chief architects of using off-book partnerships to conceal billions of dollars of losses and debt, pled guilty to securities and wire fraud in 2004 and was sentenced to six years in prison.

Who did Ken Lay blame for the scandal and financial misconduct Enron?

Ken Lay, the former chairman of Enron, testifies that he was not responsible for Enron's collapse. He blames former Chief Financial Officer Andrew Fastow and The Wall Street Journal for destroying the company.

Who was responsible for Enron scandal?

In addition to Fastow, a major player in the Enron scandal was Enron's accounting firm, Arthur Andersen LLP, and partner David B. Duncan, who oversaw Enron's accounts. As one of the five largest accounting firms in the United States at the time, Andersen had a reputation for high standards and quality risk management.

Why did Accenture change its name?

In August 2000 the accounting firm Arthur Andersen and its sister firm, Andersen Consulting, split after a rancorous battle over how much the consultants owed the accountants. Under an arbitrator's ruling, the consulting firm grudgingly dropped its name, and on Jan. 1, 2001, became-Accenture.

What happened to Andersen consulting?

Under the terms of the ICC ruling, Andersen Consulting was given until December 31, 2000 to adopt a new name. Accenture began operating under its new brand on January 1, 2001. Accenture then went public on the New York Stock Exchange in July 2001.

Does Accenture do audit?

Surprising few, it was recently announced that Accenture will be shuttering its Accenture Media Management arm, which offers media audit, benchmarking and agency pitch services to advertisers.

Does Arthur Andersen still exist?

Soon after Enron became the subject of a Securities and Exchange Commission (SEC) inquiry, Enron's auditing firm, Arthur Andersen LLP, was also named in an SEC investigation; Arthur Andersen ultimately went out of business in 2002.

In what city was the Andersen trial held?

But it made clear that prosecutors went too far by pressing District Judge Melinda Harmon in Houston to set such a low hurdle for the jury to reach a guilty verdict in the case in 2002.

What did Arthur Andersen shred?

Andersen was charged Thursday with obstruction of justice for shredding Enron documents and deleting computer files. The employees' testimony came in investor lawsuits connected with Enron's collapse amid allegations of an accounting scandal.

What is David B Duncan doing now?

He currently resides in Houston, Texas and has three daughters. He withdrew his guilty plea on December 12, 2005, after the overturning of the Arthur Andersen conviction. This was approved by U.S. District Judge Melinda Harmon. In January 2008 he settled charges with the SEC that he violated securities laws.

When did Arthur Andersen shred papers?

Document Retention and Destruction Post-Arthur Andersen: What Can You Destroy? On October 16, 2002, the former Big Five accounting firm, Arthur Andersen, LLP, received the maximum criminal penalties - a $500,000 fine and five years' probation - for destruction of documents relating to its client, Enron.

What happened to Enron Corporation and Arthur Andersen LLP after the scandal?

Many executives at Enron were indicted for a variety of charges and some were later sentenced to prison, including Lay and Skilling. Arthur Andersen was found guilty of illegally destroying documents relevant to the SEC investigation, which voided its license to audit public companies and effectively closed the firm.