The fired top Andersen accountant who oversaw the firm's audits of Enron is set to plead guilty and start co-operating with federal prosecutors, according to published reports.
Mr David Duncan was expected to plead in US District Court in Houston today to a single felony count of obstructing justice for destroying Enron records, the reports said.
His guilty plea and later testimony would give US justice department prosecutors a very knowledgeable witness to build their obstruction of justice case against Andersen and any future cases against Enron or its former executives.
The Washington Postand New York Timesfirst reported the story, citing people familiar with the case.
Andersen's is the first criminal case in the government's massive inquiry of Enron's crash, with a trial set for a May 6th start. Neither Enron nor its executives have yet to be called.
Mr Robert Giuffra and Mr Barry Flynn, Mr Duncan's lawyers, did not return calls seeking comment.
Mr Duncan was dismissed in January and soon after refused to testify before US congressional committees investigating Enron. His former employer initially alleged he had orchestrated a massive campaign to destroy thousands of Enron-related records in October after learning of a federal investigation into the then-reeling energy concern.
The indictment has very nearly sent Andersen the way of Enron, as its worldwide partnerships have broken up. The firm announced 7,000 US layoffs yesterday, already surpassing the roughly 4,500 US Enron workers who lost their jobs.