ACCOUNTABLE: Arthur Andersen sucked into Enron fraud investigation

Irish Times ^ | 1/12/02 | Conor O'Clery, International Business Editor, on Wall Street

[Fish out of Water]

Bump List

[Red Jones]

Arthur Andersen is a dishonest organization, but they do have many talented and basically good people working for them. Somehow, they've fallen into the trap of serving management regimes when lies are required in the books. Some corporate managers seek them out.

They get a lot of federal government contracts. They've also hired ace republican lawyer jack danfourth to defend them. Andersen's people are very smart. They know who can at least access the levers of power in the corruption-free american system.

[Tuco-bad]

Arthur Andersen knew of Enron's derivative investments.

[Rustynailww]

i was going to buy their windows but now will go with pella.

[sharktrager]

When I was a banker we had a customer who owned a bunch of eye surgery centers. These were sold to a national company, and leased back to the doctors. Arthur Anderson consulting worked with their accounting arm to design the accounting system.

The national firm ended up failing, primarily because the accounting system was so flawed they had no idea which doctors they owed money too, and who they'd paid more than what was contracted.

Millions of dollars was buzzing around the country with nobody sure if the recipients were even owed the money.

[Pharmboy]

Click here for the NY Times obituary on Arthur Andersen. They say they will likely merge with another biggie in order to survive.

Stick a fork in 'em.

[Psycho_Runner]

Right On. I have been saying this all along. not that AA CPA's are dishonest, but rather I think someone within Arthur Anderson was paid off to put the seal on the audit and the Generally Accepted Accounting principles (GAAP). I prefer seeing some people within Anderson going to jail. Everyone knows the connection between Enron and the democrats (well except for the mainstream media) now its interesting if there is any connection between Arthur Anderson and the democrats. Just my humble opinion.

[neverquit]

The big five accounting firms have gotten rich by selling insurance/protection to firms like Enron rather than really auditing them. They send a bunch of new college grads who don't know squat out to do the required audit, send an inflated bill and everyone is happy. It's time big five CPA's lost their meal ticket and spent some time in jail. Anderson should lead the parade.

[Psycho_Runner]

for sure, I have seen the audit teams. Grads who have had no experience with Accounting systems or Ledgers. One of them had asked me what the number was before the Ledger Title. kinda caught me off guard. Seems they didn't even know the numbers before the Account title might be part of the title itself. good thing I am honest cuz I probably could've pulled a Enron (fast one).

[Southack]

"Arthur Andersen knew of Enron's derivative investments.

Bingo.

One of Enron's CFOs (Fastow??) was hired straight out of Andersen. Clearly Andersen knew everything about Enron. Fastow even set up the off-book partnerships such as JEDI and Chewco that were illegally used to prop up Enron's credit rating and stock price by moving Billions in debt off Enron's books. Andersen also reported Enron's finances as being "sound" in their last public financial report (of course, Enron went bankrupt promptly after that report came out).

I've worked with Andersen in the past, and I've never seen a more unethical corporate culture. Andersen IROCs and partners fit right in with the Mobsters running Waste Management, the crooks at Sunbeam, and the fraud at Enron.

The only thing that has surprised me so far about this whole Andersen/Enron crime has been that no one seems to have fled the country yet...

[Liz]

When I was a banker we had a customer who owned a bunch of eye surgery centers. These were sold to a national company, and leased back to the doctors. Arthur Anderson consulting worked with their accounting arm to design the accounting system. The national firm ended up failing, primarily because the accounting system was so flawed they had no idea which doctors they owed money too, and who they'd paid more than what was contracted. Millions of dollars was buzzing around the country with nobody sure if the recipients were even owed the money.

Shocker. Those who are not dependent on accountants, except for tax returns, believed there are generally accepted accounting procedures in place that are inviolable. AA seems to have made it up as they went along. Shocking.

[Liz]

Andersen's people are very smart. They know who can at least
access the levers of power in the corruption-free american system.

I assume you forgot to add "sarcasm off" at the end.

[Liz]

Arthur Andersen knew of Enron's derivative investments.

Also culpable has to be AA's ex-CFO Fastow. This is the
brainhead who "invented" the off-the-books loss procedure.

[Liz]

The only thing that has surprised me so far about this whole Andersen/Enron
crime has been that no one seems to have fled the country yet...

After Enron ousted Fastow, it was believed he had fled to Israel.
But he surfaced with David Boies - of Fla recount fame - as his rep.

[Liz]

Also culpable has to be AA's ex-CFO Fastow.
This is the brainhead who "invented" the off-the-books loss procedure.

Oops. I meant Enron's ex-CFO......

[Liz]

Stick a fork in 'em.

Yep. NY Times piece was a harbinger of things to come....

[anymouse]

The Enron Scandal and Democrats website

[Liz]

Link......at last they're fighting fire with fire..........

[Tuco-bad]

Arthur Andersen knew of Enron's derivative investments.

Bingo

Hey Southack - we agree on something, you're no fun anymore!