NEW YORK (CNN/Money) -
Embattled accounting firm Arthur Andersen LLP is willing to consider a public admission of responsibility for its shredding of Enron Corp. documents but will not plead guilty in a courtroom, an Andersen attorney told CNN/Money Thursday.
"We would consider something short of a guilty plea in court that would demonstrate an acceptance of responsibility," Stanley Brand, an Andersen attorney in Washington, said. He made his comments after published reports claimed the Justice Department would be willing to settle its obstruction of justice case against Andersen in exchange for a public admission that the firm shredded documents illegally.
Andersen also would promise to conduct itself properly in the future, Brand said. Such an agreement would allow the Justice Department to revive charges against the firm if it breaks its pledge.
The Wall Street Journal reported Thursday that the DOJ would be willing to consider a settlement in exchange for a public admission of wrongdoing by Andersen. That would be a change in direction by Justice in the case. Up until now, Justice had insisted a guilty plea or conviction was justified by Andersen's destruction of documents related to now bankrupt energy trader Enron Corp. Executives of the Chicago-based accounting firm insisted any wrongdoing was limited to some members of its Houston office and the firm as a whole did nothing wrong.
Department of Justice spokesman Brian Sierra declined comment on the report, saying only that the DOJ has long wanted Andersen to accept its responsibility.
On March 14, federal prosecutors indicted Andersen for allegedly obstructing justice when it shredded Enron documents. In its one-count indictment, the DOJ claimed that Andersen destroyed "tons" of Enron documents several days after it found out about a federal investigation of the energy company. Andersen, which has admitted the shredding took place, has tried to put the blame on staff in its Houston office and claimed that senior management did not authorize the destruction.
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A trial is set to begin May 6, but some Andersen executives and former Federal Reserve Chairman Paul Volcker, who is chairman of an independent oversight committee at the firm, have said Andersen may not be able to last until the trial due to the continued loss of clients.
The newspaper said there are no settlement talks now taking place, but quoted two unnamed Justice Department officials as saying that prosecutors are open to such discussions. While they wouldn't comment on whether Andersen could avoid a guilty plea to settle the case, one of the officials told the paper that in the past they hadn't always insisted on guilty pleas to settle cases of corporate misconduct.
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