Andersen auditor pleads guilty

HOUSTON -- The Arthur Andersen auditor who oversaw Enron's books pleaded guilty Tuesday to ordering the shredding of Enron documents and agreed to cooperate with prosecutors in a deal that could break the scandal wide open. \nFormer partner David B. Duncan pleaded guilty to obstruction of justice, admitting he tried to thwart an Enron investigation by the Securities and Exchange Commission. \nHe is believed to be the first person in the Enron case to strike a deal with federal prosecutors. \n"Documents were in fact destroyed so that they would not be available to the SEC," he told U.S. District Judge Melinda Harmon, reading from a statement. \nThe charge carries up to 10 years in prison and hundreds of thousands of dollars in fines. Duncan remains free until his sentencing Aug. 26. \nHe had no comment as he left the courthouse. His attorney, Sam Seymour, said: "He's continuing his cooperation, as we've said all along." \nAndersen spokesman Patrick Dorton declined comment on Duncan's plea. \nDuncan was fired by Andersen after the accounting firm acknowledged the large-scale destruction of documents and deletion of computer files related to the collapse of the energy giant, whose bankruptcy cost thousands of employees their jobs and, in many cases, their life savings. \nDuncan could prove crucial in enabling prosecutors to build a case against Enron. As the senior auditor in charge of the Enron account, he would presumably have knowledge of the complex web of partnerships used by the company to keep millions of dollars in debt off its books. \nUnder the plea bargain, Duncan is immune to any further prosecution related to the Enron case as long as he fully cooperates with federal authorities -- which could include testimony at future trials -- and agrees not to sell his story or otherwise profit from the debacle. \nIn court, Duncan described how he ordered Andersen employees Oct. 21 to destroy certain documents two days after he learned that the SEC was investigating Enron. \n"I also personally destroyed such documents," Duncan told the judge. "I accept that my conduct violated federal law." \nProsecutors said the shredding occurred between Oct. 23 and Nov. 9. The SEC notified Andersen on Nov. 8 that it would subpoena documents related the firm's work on Enron.