Office of the Attorney General
David Samson, Attorney General
FOR IMMEDIATE RELEASE:
March 18, 2002
FOR FURTHER INFORMATION CONTACT:
Thomas Auriemma, Kerry Hand (609) 441-2533, cell#
(609) 229-2198
Chuck Davis, Genene Morris (609) 292-4791
Attorney General Samson
Issued the Following Statement
Concerning Today's Action Against Arthur Andersen
This office has been carefully monitoring
the events in the wake of the Enron bankruptcy. To
date, we have moved in a deliberate way to review
the conduct of Enron and Arthur Andersen.
At the same time, I am responsible for
the financial viability of the casino industry in
general and, in light of the federal indictment of
Arthur Andersen, I am concerned about those casinos
served by the Andersen firm in particular.
My concern stems from the special constitutional
and statutory duty to protect the public interest
in our gaming industry. By "public interest"
I mean not just the shareholders and employees of
the casinos, but the senior citizens and disabled
citizens who depend on the hundreds of millions of
dollars New Jersey casinos contribute in taxes toward
the Casino Revenue Fund. In 2001, alone, New Jersey
casinos contributed more than $400 million to the
Casino Revenue Fund, which finances transportation
programs, home delivered meals, property tax reductions
and many other authorized programs for senior citizens
and persons 18 years of age or older with disabilities.
In short, there is a special trust for the citizens
of New Jersey in the financial stability of the casinos.
It is essential to maintain public confidence
in New Jersey's casino industry and its financial
soundness through objective and impartial auditing.
Arthur Andersen's indictment calls into question its
integrity and ability to meet the high standards required
to carry out sound business practices necessary to
do business with New Jersey casinos.
Accordingly, we are approaching the
circumstances concerning Arthur Andersen on a broad
front with a series of measured steps as follows:
- The Division of Gaming Enforcement
has filed today before the Casino Control Commission
a complaint and motion to temporarily prohibit New
Jersey casinos and their parent companies from doing
business with Arthur Andersen. DGE's complaint also
will seek an order to permanently bar the casinos
and their parent entities from working with the
company. Although Arthur Andersen will be given
an opportunity to be heard at a plenary hearing,
any temporary order that is granted, we expect,
will remain in effect until the hearing. We will
consider any hardship application from casinos on
a case-by-case basis.
- Although I will not discuss
the specifics, we are, through the Division of Criminal
Justice, in touch with the Department of Justice
regarding the indictment and ongoing investigation
of Arthur Andersen.
- I have asked the New Jersey
State Board of Accountancy to undertake a full review
of the extent of Arthur Andersen's work in New Jersey,
including any work for the State, and to ensure
that it is conducting business ethically and in
accordance with State law.
- We are reviewing our options
in connection with the Enron collapse to protect
the State's interests through the recovery of losses
to our pension funds.
- I have asked the Division of
Gaming Enforcement to review carefully the financial
stability of the casinos served by Arthur Andersen
and to report back to me as to further appropriate
action.
We will continue to act with prudence
to protect our citizens' interests.
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