The New York Times-20080129-Accountant And S-E-C- Reach Deal In Enron Case

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Accountant And S.E.C. Reach Deal In Enron Case

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A former partner at Arthur Andersen responsible for the Enron Corporation account has settled allegations that he violated securities laws when he signed audit reports that were false and misleading, the Securities and Exchange Commission said Monday.

From 1998 through 2000, the accountant, David B. Duncan, was reckless in not knowing that the unqualified audit reports he signed on behalf of Andersen were materially false and misleading, the S.E.C. said. Arthur Andersen is now defunct.

Mr. Duncan failed to exercise due professional care and the necessary skepticism required to ensure that financial statements for Enron, which collapsed under a string of accounting scandals, conformed to accounting rules, the S.E.C. said.

Mr. Duncan, who neither admitted nor denied the allegations, has agreed not to appear before the S.E.C. as an accountant. A fine was not levied against him.

In related proceedings, three other Andersen partners -- Thomas H. Bauer, Michael M. Lowther and Michael C. Odom -- settled S.E.C. allegations that they had each engaged in improper professional conduct in connection with their Enron work.

The three former partners, who neither admitted nor denied the allegations, have agreed not to appear or practice before the agency as an accountant. They can each petition the S.E.C. for reinstatement after two to three years.