Overview

David B. Duncan was the Arthur Andersen lead engagement partner responsible for the Enron audit account, one of the most lucrative client relationships in the firm history ($52 million per year in combined audit and consulting fees). When the SEC opened an informal inquiry into Enron partnerships in October 2001, Duncan ordered subordinates in the Houston office to begin destroying Enron-related audit documents. Over a two-week period, the Andersen Houston office shredded approximately one ton of paper documents and deleted roughly 30,000 emails and electronic files. Duncan himself participated in the destruction and instructed team members to follow the firm "document retention policy" as a pretext for the shredding. On April 9, 2002, Duncan pleaded guilty to one count of obstruction of justice, becoming the first Andersen employee to face criminal charges in the Enron investigation. His guilty plea was critical to the subsequent prosecution of Arthur Andersen LLP as a firm, the first time a Big Five accounting firm faced criminal charges. Duncan cooperated with the Enron Task Force and provided testimony about the document destruction and Andersen audit failures. He was eventually sentenced to probation. After the Supreme Court unanimously reversed the Andersen conviction in 2005 on jury instruction grounds, Duncan was permitted to withdraw his guilty plea. However, by that point both his career and the 89-year-old firm were permanently destroyed.

Key Affiliations

Controversies & Concerns

Related Investigations (1)

Known Associates & Connections

Sources & Documentation

2 documented sources from official records, investigations, and reports