Monday, June 17, 2002

Andersen Loses Criminal Trial reports that after a six-week trial and 10 days of deliberations, jurors convicted Andersen for obstructing justice when it destroyed Enron Corp. documents while on notice of a federal investigation. Andersen had claimed that the documents were destroyed as part of its housekeeping duties and not as a ruse to keep Enron documents away from the regulators. This ho-hum defense was thrown out by the jurors as they voted to convict Andersen of the crime. Thus, Andersen now faces up to 5 years probation plus a $500,000 fine. But the worse is yet to come as a class action suit is underway to compensate thousands of American investors who have suffered damages for Andersen's actions.
Full text of the news here.

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