| Topic: |
Sociology > Depression |
| User: |
"Bacon" |
| Date: |
25 May 2006 10:18:53 PM |
| Object: |
The Enron Verdict |
Brings back bad memories. I spent 6 good years with Arthur Andersen
in Atlanta. I had moved on a year before Andersen imploded as a
direct result of the Enron bankruptcy and fraud with Andersen
shredding two tons of evidence on the eve of the subpoena.
The Department of Justice guilty verdict against Andersen which killed
the company was later thrown out by the Supreme Court, interestingly.
But the company was long gone. All the professionals just fled to
other firms and did the same audits usually on the same team. For
example, the entire Atlanta Georgia-Pacific audit team of 12 people
(which I helped assemble as the manager on the project) was hired by
Ernst & Young and did the same audit with different business cards.
My Dad didn't fare so well in Andersen's downfall. He was a retired
partner out of the St. Louis office. The early retirement benefit at
age 56 is 2.5 times your annual draw at the time. For a senior
partner with the firm over 35 years this is substantial.
The benefit is paid out over 10 years and is not funded, it's paid out
of current revenues. He had received 3 payments and missed out on the
remaining 10. That and the stock market wiped out about 40% of his
net worth almost overnight. He was depressed.
It ended up being a good thing. He got back into the business world
and now sits on the boards of Peabody Energy (NYSE: BTU), Natural
Resource Partners (NYSE: NRP), and 2 public Claymore equity funds with
some other non-public director roles. He's rebounded and is happier
now than ever in his early 60's.
I comment negatively on him all the time but have tremendous respect
for his accomplishments. Google him, Robert B. Karn III...his
accomplishments make you sick. I'm the fourth BTW.
.
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