May 25, 1986
A news item in your April 30 edition ("FCA filed a lawsuit against Arthur Andersen & Co.") appears to have all the ingredients to substantiate the lack of accountability of American business leaders. Spectacular growth in a competitive industry is always suspect. Financial Corp. of America, in light of their recent loan write-offs, must have lowered their underwriting requirements, knowing full well that a downturn in the economy would produce disastrous losses. Predictably, a downturn happened and also, predictably, came the resultant responses in the grammar-school mentality of American business leaders: "It's not my fault!"
June 10, 2002 |
Juors deliberating the fate of Arthur Andersen on charges of obstruction of justice will resume this morning in Houston after meeting over the weekend without reaching a verdict. The nine-man, three-woman jury, which is being sequestered, has been deliberating since Thursday. They met on Saturday and on Sunday at the federal courthouse. At one point Sunday they asked for a dictionary. U.S.
July 16, 2002 |
Arthur Andersen lost its last audit client in the Standard & Poor's 500 index as Freeport-McMoRan Copper & Gold Inc. dropped the disintegrating accounting firm and hired Ernst & Young. Andersen had been Freeport's auditor since 1988, said New Orleans-based Freeport, owner of the world's largest gold mine. Andersen, Enron Corp.'s auditor for 16 years, was convicted last month of obstructing a U.S. investigation of Enron's collapse. It will stop auditing public companies by Aug. 31.
May 2, 2001 |
Accounting firm Andersen has agreed to pay $110 million to Sunbeam Corp. shareholders to settle a fraud lawsuit concerning its work for the struggling appliance maker. The settlement is the second-largest ever paid by an accounting firm in a securities lawsuit, said Robert Kornreich, an attorney for shareholders. Boca Raton, Fla.
October 17, 2002 |
HOUSTON -- Arthur Andersen, the accounting firm once revered for its commitment to integrity, was sentenced to the maximum $500,000 fine and five years' probation Wednesday for obstructing a federal inquiry into the collapse of former client Enron Corp. The Chicago-based accounting giant had previously surrendered its licenses to audit financial statements and retains fewer than 1,000 U.S. employees, down from 28,000 before the obstruction charge.
November 13, 2001 |
Arthur Andersen may face U.S. Securities and Exchange Commission sanction and shareholder lawsuits because it certified Enron Corp. financial reports that the company disavowed last week as inaccurate, legal and accounting experts said. Andersen, the world's fifth-largest accounting firm, served as Enron's outside auditor for more than a decade. Last week, the company reported that it overstated earnings by $586 million over 41/2 years, inflated shareholder equity by $1.
October 2, 1986 |
Federal regulators on Wednesday fined what was once one of the nation's largest commodity firms a record $1.5 million in connection with its role in alleged silver manipulation in 1979 and 1980 and its slipshod supervision of a multimillion-dollar sugar and cocoa futures trading program. The Commodity Futures Trading Commission also charged eight former executives of the firm, ContiCommodity Services, with fraud in connection with the trading program.
April 11, 1989 |
Charles W. Knapp, former head of Financial Corp. of America, will get to keep his controversial $2-million severance payment under a proposed settlement to end litigation against the now-bankrupt savings and loan holding company. Knapp received the severance pay after federal thrift regulators ousted him as FCA chairman and chief executive in 1984 in the midst of a deposit run. He received the payment from FCA's board in return for his agreement to resign, but FCA later sued to recover the money on the grounds that it was grossly excessive.