Corporate Scandal Coverage to Stay On Track Despite New Andersen Verdict

By Lizzie Newland
June 8, 2005 05:52 PM

With the abundance of white collar crime in recent years, coverage of corporate fraud has been accordingly plentiful. And that doesn't look to change, according to business reporters covering the recent overturning of the Arthur Andersen guilty verdict. 

 

Arthur Andersen, the fifth-largest accounting firm in the country, had handled the books for companies like Enron, WorldCom and Waste Management, all involving executives now facing fraud accusations. The accounting firm became the iconic poster child of corporate scandal when it was convicted in 2002 for obstruction of justice by "corruptly persuading" employees to destroy evidence. 

 

But in a twist of irony, the U.S. Supreme Court ruled last week that the judge was vague in her jury instructions for determining criminal intent to find Andersen guilty. The higher-court ruling now clearly states that there must be criminal intent in corporate fraud cases. 

Carrie Johnson of The Washington Post talked to legal experts who claimed that the decision will not have a chilling effect on the prosecution of white collar crime. But it begs the question of whether journalistic coverage will change.

 

The simple answer is "no," says Greg Burns, a senior correspondent for The Chicago Tribune. "I wouldn't change anything in the way we covered this." 

 

The overturn does not serve to expunge Arthur Andersen's fraudulent conduct since it was based on a technical jury issue. Burns, who with his colleagues previously wrote a four-part series on the Andersen case, says he will continue to "give the readers everything there is to know" in future cases. 

 

The Chicago Tribune carried several stories about the Andersen overturn, including a front page story, an editorial and Burns's look at reactions from Andersen alumni. Burns and his colleagues interviewed a few of the 28,000 former employees who had lost their jobs as a result of the conviction, and he emphasizes the human toll as an important part of this business story. 

 

That human aspect also plays a role in how the story is playing out for business reporters, as prosecutors opt to target individuals rather than bring down an entire company, now dubbed the "Andersen effect."

 

"In these deals, law enforcement stops short of pursuing criminal charges in exchange for reforms, restitution and cooperation against culpable employees," wrote Burns in a story earlier this spring, highlighting a larger trend that allows the organizations to continue despite management wrongdoing. A prime example is the trial of Bernard Ebbers, the former CEO of WorldCom Inc., which now operates as MCI.     

 

Still, Burns says these stories about corporate crime aren't going anywhere, thanks to business reporters who continue digging into them.

 

"These cases still fascinate people," Burns says. "I will continue coverage of these stories as aggressively as I ever have."

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