Washington (March 11, 2002) - Federal prosecutors have reportedly prepared an indictment that charges Big Five firm Andersen with obstruction of justice stemming from its admission that it destroyed thousands of related documents and pertinent emails related to the firm's failed audit of bankrupt energy provider Enron.

Various reports including the New York Times, said the indictment could be handed down this week.

As a result, Andersen's legal team has reportedly been scrambling to hammer out a settlement with prosecutors, fearing that a trial would in all likelihood cast a near-fatal blow to the 89-yeard old firm.

The news capped off a rough week for Andersen, who lost both mortgage provider Freddie Mac and airline carrier Delta as audit clients.

— Electronic Accountant Newswire staff

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