Ann McEachron is an administrative assistant at a large international accounting firm. Her supervisor has asked her to destroy boxes of documents from an audit the firm conducted 2 years ago. The firm generally keeps records for 7 years, because of

Question

potential tax liability and issues, but it has destroyed documents earlier in cases in which the amount of paperwork becomes overwhelming. Ann wonders about the request, but complies with her supervisor's order. ? The company that was the subject of the audit is currently under criminal investigation and the partner in the accounting firm who conducted the audit is aware of that investigation. ? It is a federal crime to destroy documents that are involved in or could potentially be involved in either a civil or criminal investigation. Evaluate the criminal liability of Ann, her supervisor and the partner for the destruction of the documents. Would your answer be different if Ann had read in the newspaper about the criminal investigation of the company?

Answer 1

The issue is whether Ann and her supervisor had intent. It is clear that the audit partner had intent, however. The fact that he did not perform the physical act of destruction does not shield him from liability under the criminal statute. Supervisors, officers and directors can be held criminally liable for the conduct of those who report to them. If it can be shown that Ann was aware of the investigation of the company, then she develops the requisite intent. Her lack of knowledge of the law is not a defense to the destruction.