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Authorities in Arizona have subpoenaed Arthur Andersen LLP for
financial information to back up the claim that its insurer is
unable to pay a $ 217 million settlement negotiated last month in
the case of a bankrupt foundation Andersen audited.
The state board of accountancy asked for records kept by an Andersen
official who participated in negotiating the March 1 settlement and
is listed as a director of the insurance company, Bermuda-based
Professional Services Insurance Co.
The subpoena also demands, by this evening, complete financial data
on the insurer, citing news reports that the insurance company was
"technically insolvent" because of a delinquent $ 100 million
premium payment. Professional Services is owned by about 30 Andersen
firms around the world, including the U.S. firm, said
David Marchant, publisher of the
OffshoreAlert newsletter, who
provided copies of company records on file in Bermuda. |
