Footnotes (72)



The Power of an Indictment and the Demise of Arthur Andersen

James Kelly

University of Illinois College of Law

July 2006

This article examines the impact an indictment can have against a limited liability partnership of professionals, in particular the Justice Department's prosecution of accounting firm Arthur Andersen. Following a brief chronological description of the factual background of the case, the article then examines the weight an indictment is supposed to have, followed by the standards for issuing an indictment against an entire partnership rather than just the individuals who allegedly performed wrongful acts. The notion of prosecutorial discretion is heavily emphasized, and the factors that contributed to the prosecution of Andersen are discussed. Finally, the implications of this situation are discussed in detail, as they extend beyond Enron and Andersen and are not limited by the passage of the Sarbanes-Oxley Act in 2002. In short, the United States government has the power to destroy a partnership, such as an accounting or law firm, without the burden of trial or having to provide evidence of crime beyond a reasonable doubt.

Number of Pages in PDF File: 20

Keywords: Accounting, Criminal Law and Procedure, Partnerships, Arthur Andersen

JEL Classification: G38, M49, K20

Open PDF in Browser Download This Paper

Date posted: July 20, 2006  

Suggested Citation

Kelly, James, The Power of an Indictment and the Demise of Arthur Andersen (July 2006). Available at SSRN: http://ssrn.com/abstract=918084 or http://dx.doi.org/10.2139/ssrn.918084

Contact Information

James Kelly (Contact Author)
University of Illinois College of Law ( email )
504 E. Pennsylvania Avenue
Champaign, IL 61820
United States
Feedback to SSRN

Paper statistics
Abstract Views: 1,944
Downloads: 425
Download Rank: 44,438
Footnotes:  72

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.531 seconds