Former Arthur Andersen Auditor Settles With SEC

Law360, New York (October 23, 2007, 12:00 AM EDT) -- Two years after the U.S. Securities and Exchange Commission sued him over his alleged involvement in the fraud that bankrupted American Tissue Inc., former Arthur Andersen LLP auditor Fred Gold has thrown in the towel in his court battle and settled with the agency.

When Gold audited the tissue and paper manufacturer in its fiscal year 2000, he either kept quiet about or recklessly overlooked the company's millions in inflated assets and earnings, the SEC alleged.

Along with co-defendants Brendon McDonald and John Parson, who settled...
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