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Andersen Fights Ban From Casino Industry

26 March 2002

ATLANTIC CITY, New Jersey – As reported by the Press of Atlantic City: "Indicted auditor Arthur Andersen LLP is mounting a vigorous defense against its proposed banishment from the casino industry.

"At the same time, one Andersen client is accusing the Division of Gaming Enforcement of seeking an `overly broad' prohibitory order and another client says it would need until at least May 15 to sever its Andersen ties.

"The DGE, meanwhile, is defending its request that the Casino Control Commission temporarily prohibit not only casinos from doing business with Andersen, but also their parent companies, subsidiaries and affiliates, as well as license applicants.

"…If the DGE's request is granted, the commission order would affect the three Trump casinos, the two Harrah's Entertainment Inc. casinos and Sands Casino Hotel, as well Boyd Gaming Corp. and MGM Mirage, which co-own the Borgata casino hotel being built here.

"In a letter Monday to commission Chairman James Hurley, Andersen argued that the DGE is punishing a 35,000-employee company for the actions of a few employees unrelated to casino work.

"…They said Andersen faces no New Jersey charges and has not been accused of wrongdoing with respect to its casino work.

"Boyd Gaming argued that it would be overreaching for the commission to prohibit it from using Andersen to conduct internal audits at its casinos in Nevada, Louisiana and Mississippi.

"…Sands is not contesting the DGE's request. Rather, it's asking the commission to consider the `hardship' of having to quickly change auditors.

"…Frederick Kraus, the casino's general counsel, said only Andersen can complete Sands' internal-control compliance letter due by April 30 and first-quarter Securities and Exchange Commission report due by May 15…"

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