Regulator wants Andersen banned

John P. McAlpin

Tuesday, March 19, 2002 | 9:55 a.m.

TRENTON, N.J. -- New Jersey's attorney general has moved to bar Atlantic City casinos from doing business with troubled accounting giant Arthur Andersen, saying that the firm's recent federal indictment should disqualify it.

The Division of Gaming Enforcement filed a motion Monday with the state Casino Control Commission seeking a temporary order prohibiting the casinos and their parents companies from using Arthur Andersen. The complaint is scheduled for a hearing before the Casino Control Commission on March 27.

Andersen has contracts with at least five of the city's 12 casinos including Donald Trump's three operations, Harrah's Atlantic City and Showboat Casino-Hotel.

If the casino commission agrees, the casinos would have 15 days to terminate any relationship with Andersen.

"We can make it longer if we have to or consider any kind of hardship requests," casino commission spokesman Dan Henneghan said.

Since 1986, Andersen has been exempt from state casino regulations under a rule that frees companies monitored by other agencies.

The U.S. attorney's office last week announced an indictment against Andersen related to the Enron Corp. collapse. Chicago-based Andersen has been charged obstruction of justice for destroying documents.

"Based upon the seriousness of the charges set forth in the federal indictment, exemption from licensure is no longer warranted," said DGE Acting Director Thomas Auriemma.

New Jersey Attorney General David Samson said the indictment calls into question the accounting firm's integrity.

"It is essential to maintain public confidence in New Jersey's casino industry and its financial soundness through objective and impartial auditing," Samson said in a prepared statement.

Arthur Andersen spokesman Patrick Dorton did not immediately return a telephone message seeking comment.