Andersen Partner Knew It Was Illegal

Former Andersen partner David Duncan testified that when he instructed people on the Enron audit team to follow the firm's document retention policy, he appreciated that it would result in the destruction of key documents.

Duncan pleaded guilty to obstruction of justice charges on April 6th and could risk 10 years in prison for his part in the affair. Andersen could face a fine of up to $500,000 and be put on probation for up to 5 years if found guilty. The firm might also be barred from auditing publicly traded companies. This would effectively put it out of business.

Andersen denies wrongdoing and claims that the document shredding was the action of rogue elements within the firm.

The case continues.