The US Justice Department is considering bringing criminal charges against accounting firm Andersen for its role in the collapse of Enron, federal officials said last night.
It may be some time before any action is taken, the officials said.
Andersen, the embattled Big Five accounting firm headquartered in Chicago, had been the auditor for Houston-based Enron until it was fired in January. Andersen has admitted shredding documents about Enron sought by investigators.
A Justice Department task force is investigating Enron's collapse, which involved allegations that the company misled investors about its accounting practices.
Former prosecutors have said the document destruction leaves Andersen open to charges of obstruction of justice. The government could either seek an indictment of Andersen by a grand jury or negotiate a settlement contingent on its co-operation in the Enron inquiry, these experts say.
Enron filed the largest-ever US bankruptcy on December 2nd amid questions over its accounting methods and the role of extensive off-the-books partnerships.
Its collapse has cost thousands of jobs and lost billions of dollars in shareholder equity.