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News
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Still no Andersen verdict
Jury ends fifth day of deliberations as alternate juror says government didn't prove case.
June 10, 2002: 7:29 PM EDT

NEW YORK (CNN/Money) - Jurors in the Arthur Andersen LLP criminal trial finished their fifth day of deliberations Monday without deciding whether the accounting firm obstructed justice when it destroyed Enron Corp. documents last year.

The jurors began deliberating Monday at 10 a.m. ET and adjourned at 6:30 p.m. ET. The 12-member panel will reconvene Tuesday, its sixth day, at 10 a.m. ET in Houston. After asking for a variety of items last week, including a transcript of testimony from fired Andersen partner David Duncan, jurors made no requests Monday.

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The jury of nine men and three women was handed the case last Thursday after five weeks of testimony. Andersen is accused of obstructing justice when it destroyed Enron documents late last year while on notice of a Securities and Exchange Commission investigation into Enron Corp.

Enron, the Houston-based energy trader, filed the largest U.S. bankruptcy ever on Dec. 2 when it collapsed under its heavy debt load. The once mighty Enron allegedly used thousands of off-the-book partnerships to hide nearly $1 billion in debt and inflate profits. Andersen, as Enron's accountant for 16 years, signed off on the company's financial statements.

Meanwhile, one alternate juror said she didn't think the government proved beyond a reasonable doubt that Andersen intended to obstruct justice when it destroyed Enron documents.

Gloria Antia, the 13th juror, said that she thought Duncan, the former Andersen audit partner who directed the destruction of Enron documents, "seemed to be making an innocent mistake."

Antia told CNN TV affiliate KPRC in Houston that she sat through all the evidence and didn't believe that the government proved its case against Andersen. The firm allegedly destroyed relevant Enron-related documents last fall while on notice of a federal investigation into Enron's business practices. The Chicago-based auditor has admitted that it destroyed Enron documents, but insists the destruction was more of a housekeeping exercise and nothing relevant was destroyed.

Government prosecutors claimed that Andersen had a motive to thwart the federal investigation and destroyed Enron documents because it feared another SEC probe could result in Andersen losing its license to conduct audits. The firm was already on probation for its audit work for Waste Management Inc., which faced shareholder lawsuits over accounting fraud.

If found guilty of obstruction of justice, Andersen faces a $500,000 fine and could lose its license to audit public companies in the United States.

But Antia said she would have acquitted Andersen of the crime. Antia, along with three other alternate jurors, sat through the five weeks of the trial and was dismissed after testimony ended last week.

Antia called Andersen's lead defense attorney, Rusty Hardin, last week after she was released from the trial and told him that he did a good job, Hardin told CNNfn.

"The burden of proof hadn't been met," she told KPRC Saturday.

Andersen began shredding documents on Oct. 23 and didn't stop until after it received a subpoena on Nov. 8.

"I didn't think [Duncan] could be held responsible for something before he was notified," Antia said.

Duncan called the meeting Oct. 23, when he was the firm's lead audit partner on the Enron account, and ordered employees to adhere to the firm's guidelines on "document retention," which calls for the destruction of irrelevant documents.

Andersen fired Duncan in January for directing the destruction of documents.

For Andersen to be guilty, the government must prove that one person at Andersen "corruptly persuaded" another to shred documents and keep them away from regulators. The persuader can be Duncan or anyone else at Andersen.

Duncan in April agreed to serve as a government witness against Andersen and admitted that he oversaw the destruction of Enron documents to thwart a government investigation. But the former auditor testified in the criminal trial that he didn't know he was committing a crime when he initiated the shredding last year. Duncan said that in fact it took months for him to realize that he did commit a crime.  Top of page






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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.