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USA: Feds Reject Andersen Settlement Offer

Financial In Market WASHINGTON, DC -- The Justice Department has rejected a proposal from accounting firm Arthur Andersen for settlement of a criminal obstruction charge stemming from the shredding of Enron Corp. documents, an Andersen attorney said Friday.

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Oriental Trading "They rejected our proposal," said the attorney, Rusty Hardin. "So I think all kinds of discussions with them are probably over for now. ... So we just proceed to trial. ... I think we're probably through talking to the government about the case."

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Financial Forex Forex Software Hardin declined to give any details of Andersen's proposal or the government's reasons for rejecting it.

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Trading Andersen, which is scheduled to go on trial May 6 in Houston on the obstruction-of-justice charge, had sent a letter to the Justice Department Wednesday laying out its position in response to the government's request last week.

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Trading Financial System Justice Department spokesman Mark Corallo on Friday said only that the department issued a response to the accounting firm.

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Day Trading In a related development Thursday, the Senate Judiciary Committee approved an Enron-inspired bill that would create new criminal penalties for securities fraud. The action came a day after the House passed legislation that would tighten oversight of the accounting industry and toughen some corporate rules -- a measure assailed by consumer groups and some Democrats as too weak.

Forex Financial Trading The Andersen, one of the Big Five accounting firms, has been struggling for survival as it rapidly loses clients and affiliates following its indictment last month.

Fortune Make Option Trading Former Federal Reserve Chairman Paul Volcker, who has been overseeing changes at Andersen, said Thursday that in recent weeks, his plan to turn the firm into one that does only auditing has lost support among Andersen partners.

Science Of Financial Market "Loyalties have dissipated, people are looking out for their own welfare," Volcker said in an interview on CNBC. "I'm not sure that critical mass (of support) still exists. If all the other problems evaporated tomorrow, the other problems obviously are not going to evaporate tomorrow."

Future Trading On April 18, Andersen notified the Justice Department that it was not in a position to make a decision on any criminal settlement.

Financial Sales Services "We just agreed that we're just not there right now," Hardin said at the time. "We rejected certain proposals by the government and agreed to continue to review other proposals of the government, but we could not complete that review within the time frame the government was demanding."

Commodity Trading Both Hardin and company spokesman Patrick Dorton left open the possibility that negotiations could resume.

Financial Services Trading The collapse of the secret negotiations occurred after the outlines of a deal had been struck, a person familiar with the case said Thursday.

Online Forex Trading Among the sticking points was specific language on an admission of guilt in illegally destroying Enron documents. Andersen also had objected to the length of time the Justice Department had proposed for deferring possible prosecution of the accounting firm, arguing that three years was too long, this person said.

Financial Portfolio Trade The Securities and Exchange Commission is pursuing a civil investigation of Enron and Anderson.

Sierra Trading Post The grand jury indictment against Andersen, which was unsealed March 14, alleges the firm destroyed tons of paper at its offices worldwide and deleted enormous numbers of computer files on its Enron audits.

Trading Financial Future David Duncan, the former senior Andersen auditor on the Enron account, has pleaded guilty to ordering the shredding of Enron documents and agreed to cooperate with prosecutors. He is scheduled to be sentenced in August.

Forex Trading Software The government had offered to defer any criminal prosecution of Andersen for up to three years, requiring Andersen as a corporation to cooperate in the investigation of Enron and promise not to violate any laws during that period.

Trading Post Anderson also has been negotiating separately to settle civil lawsuits brought by Enron shareholders and creditors. Those talks broke off last week.

Trading System The firm has been losing clients and workers since its acknowledgment in January that it shredded audit documents and deleted computer files related to Enron's audits after the SEC launched an investigation into the energy-trading company.

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