At Enron Corp.'s request, an auditor with Arthur Andersen LLP was transferred after questioning its financial practices, internal memos showed. Documents released Tuesday by a House panel detail Carl Bass's strong objections to special-purpose entities known as Raptors, allegedly used to conceal millions of dollars in losses at the energy-trading giant. A note written by another Andersen executive said, "Client sees need to replace Carl." Congress, the Justice Department, and other authorities are investigating Enron's collapse.
The White House reaffirmed its support for Israel's right to self defense as Secretary of State Powell prepared to discuss Middle East violence with Arab-American leaders. "In the wake of the suicide bombings and the attacks that took place in Israel, [President Bush] understands and respects Israel's right to defend herself," spokesman Ari Fleischer said. Foreign Arab leaders want Bush to persuade Israel to withdraw troops from Palestinian-held areas.
A month after his conviction was overturned in the Abner Louima torture case, former New York police officer Charles Schwarz (above) appeared in Brooklyn federal court. He was to be arraigned on perjury charges related to the 1997 incident, considered the city's worst example of police brutality. Another ex-officer, Justin Volpe, is serving a 30-year sentence for brutally assaulting Louima, a Haitian immigrant, in a police station restroom.
Negotiators in a lawsuit accusing Cincinnati police of racial profiling announced a tentative settlement. The Cincinnati Black United Front and the American Civil Liberties Union had sought a court order prohibiting the practice. The police department denies using racial profiling. Shortly after the March 2001 suit was filed, a white officer fatally shot an unarmed black man, the 15th such deadly confrontation in six years. The incident touched off three days of riots.
Two former top aides to Illinois Gov. George Ryan (R) and his campaign committee were charged with racketeering and other crimes in a 10-count federal indictment. It was the biggest to emerge yet from a four-year investigation into a driver's license-for-bribes scheme that prosecutors allege funnelled money into Ryan's campaign fund. While Ryan has not been charged with wrongdoing, the scandal damaged his popularity and he decided not to run for reelection.
The shuttle Atlantis is scheduled to lift off today from Cape Canaveral, Fla. The shuttle is carrying a 44-foot, 27,000-pound girder and other parts for additional construction on the International Space Station.