Andersen trial enters fifth day of jury deliberations
HOUSTON (AP) – The jury in Arthur Andersen LLP’s obstruction of justice trial deliberated for a fifth day Monday over the firm’s destruction of documents related to Enron Corp. Jurors asked no questions heading into Monday afternoon, as deliberations surpassed 30 hours since starting Thursday.
Lead Andersen attorney Rusty Hardin said he was “delighted” with the lengthy deliberations because it indicated close attention to five weeks of evidence rather than a snap decision.
“It is constructive that they have not once told us they’re split,” Hardin said. “This was all supposed to be history three hours after they went out.”
Prosecutors have declined to speculate on deliberations, which stretched through the weekend.
Andersen is charged with shredding documents and wiping out computer records related to Enron audits in October and November last year as the Securities and Exchange Commission opened an investigation into the energy-trading company’s complicated accounting practices.
Prosecutors contended Andersen suddenly promoted a document retention policy to orchestrate the shredding on the assumption that the Enron probe eventually would extend to Andersen, which had signed off on the energy company’s financial statements.
The policy calls for the destruction of extraneous papers and e-mail not needed to support audit conclusions.
Andersen countered that the shredding of extraneous or confidential client information was routine and important papers – many of which featured prominently in the prosecution’s case – were retained. Andersen is the first defendant prosecuted in the fallout of Enron’s failure last year. The energy company, once one of Andersen’s highest-profile clients, fired the firm in January.
A grand jury investigation of Enron is ongoing.
If convicted, Andersen could face fines and be barred from auditing public companies.