andersen timeline, ap

Sunday, June 16, 2002

ANDERSEN GUILTY OF OBSTRUCTION OF JUSTICE

Jurors convicted Arthur Andersen on Saturday of obstruction of justice during the Enron investigation. Industry analysts say Andersen's conviction signals the end of the company.

  • Oct. 22, 2001: Enron Corp., one of Andersen's biggest clients, discloses SEC inquiry into possible conflict of interest related to company's dealings with partnerships.

    Nov. 8: Enron revises financial statements for previous five years to account for $586 million in losses.

    Dec. 2: Enron files for Chapter 11 bankruptcy protection.

    Dec. 13: CEO Joseph Berardino of Andersen Worldwide, which includes U.S. arm Arthur Andersen LLP, defends Andersen's work for the company to Congress but acknowledges that financial accounting practices must change.

    Jan. 10, 2002: Andersen discloses in Washington that its employees destroyed "significant" number of Enron-related documents.

    Jan. 15: Andersen fires chief Enron auditor David Duncan.

    Jan. 17: Enron fires Andersen as auditor.

    Jan. 28: Berardino insists the firm can survive without a merger and isn't pursuing one.

    Feb. 4: Andersen hires former Federal Reserve chairman Paul Volcker to chair an independent oversight board with power to make reforms at Andersen.

    March 14: Government announces indictment of Andersen by federal grand jury for alleged obstruction of justice for destroying Enron documents.

    March 22: Volcker urges Andersen's top management to step aside so he can install and head an independent board to try to save company.

    March 26: Berardino resigns amid exodus of clients, overseas partners.

    April 2: Andersen concedes defeat in effort to merge its non-U.S. operations with those of KPMG after its lucrative Spanish affiliate becomes the latest to bolt to another rival.

    April 4: Andersen initiates breakup of its U.S. operations, announcing agreement for "significant" number of its tax partners and professionals to join rival Deloitte & Touche.

    April 8: Andersen announces 7,000 layoffs planned over next several months, more than a quarter of U.S. work force.

    April 9: Duncan pleads guilty to an obstruction charge for shredding documents, agrees to cooperate with prosecutors.

    April 26: The Justice Department rejects a last ditch effort by Andersen to settle obstruction case. U.S. District Judge Melinda Harmon refuses to delay Andersen's May 6 trial after the firm's attorney argues his client couldn't get a fair trial because of intense media coverage.

    May 6: Jury selection begins in Andersen's obstruction of justice trial in a Houston federal court.

    May 7: Opening statements begin in Andersen's obstruction of justice trial.

    May 8: Andersen announces that rival Deloitte & Touche would hire away about 2,000 of its workers. KPMG Consulting Inc. says it plans to acquire as many as 23 business consulting units of Andersen Worldwide's member firms for up to $284 million.

    May 13: Duncan begins nearly five days of testimony.

    June 5: The jury is handed the case; deliberations begin the next day.

    June 12: The jury says it's deadlocked. But the judge tells them to resume their discussions the next day.

    June 15: Jury finds Arthur Andersen guilty.

    -- AP

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