Arthur Andersen shredded literally tons of Enron documents after learning of SEC investigation, running shredders 24/7

When the Enron scandal erupted in late 2001, one detail seemed almost too convenient to believe: the company's auditors at Arthur Andersen had allegedly destroyed massive quantities of documents while the SEC was circling. Critics called it conspiracy thinking. It turned out to be meticulously documented fact.

The claim emerged from the wreckage of what would become the largest corporate fraud in American history at that time. Sherron Watkins, an Enron executive, had warned company leadership in August 2001 that accounting irregularities could destroy the firm. When her warnings went unheeded, she escalated to the SEC. That's when the shredding began in earnest.

On October 10, 2001, just days after Watkins made her concerns known internally, Arthur Andersen partners in Houston issued orders to destroy Enron-related documents. The operation wasn't subtle or small-scale. Company records show that shredders ran virtually constantly over the following weeks. Partners explicitly told employees to work overtime. Dozens of large trunks transported documents between Andersen offices in Houston, Portland, Chicago, and London. The scale was industrial: tons of paper fed into machines designed to eliminate evidence.

When the SEC formally announced its investigation on October 17, the destruction accelerated rather than stopped. Partners intensified the effort, understanding that a federal inquiry meant the documents were now legally protected. The shredding continued unabated until November 8, 2001, when SEC subpoenas arrived at Andersen's door. Only then did the machines fall silent.

The initial dismissal of this claim as conspiracy theory didn't last long. Congressional investigations into the collapse documented the destruction in meticulous detail. Witnesses testified. Internal communications surfaced. The operation was too widespread and involved too many people to deny. Partners had communicated their intent in writing. Employees confirmed working overtime shifts specifically to shred documents. The physical evidence—or rather, the deliberate absence of it—told its own story.