To Shred Or Not To Shred
by Marianna Diamos

When Enron's auditor Arthur Andersen, the huge international accounting firm that employs over 85,000 people, got indicted for obstruction of justice a few days ago, it wasn't the first time the Chicago-based company had been brought to task by a simple little shredder.

Back in 1998, Andersen was caught in the middle of another accounting scandal, when in-house records that hadn't been destroyed showed the firm knowingly certified $1.4 billion in overstated profits for their client Waste Management. Like the current Enron debacle, investors lost hundreds of millions of dollars and Andersen was forced into a settlement with the Securities and Exchange Commission. The accounting firm resolved, from then on, to use the standard industry practice of shredding documents once they are no longer necessary.

Recently though in a twist of irony, stacks of Enron documents remained intact at the Houston offices because Andersen, in a money saving plan, had cut back on their teams of document destroyers. That is until Oct. 23, when word got out the S.E.C. was making an inquiry into Enron's books.

That's when, according to testimony, Andersen's lead partner on the Enron account, David B. Duncan, ordered an "expedited effort to destroy documents." A move which brought on the wrath of Rep. Billy Tauzin R-La, who through a spokesman said that, "destroying documents after learning of an S.E.C. inquiry is more than just unethical, it could be criminal, as well," Andersen is the first major accounting firm ever charged with a felony.

While Mr. Duncan, 42, isn't talking - he took the Fifth - his lawyer said he was merely following the instructions e-mailed to him from the firm's Chicago headquarters. His silence was not appreciated by the committee. "Mr. Duncan," said Rep. James C. Green-wood, R-Pa, "Enron robbed the bank, Arthur Andersen provided the getaway car, and they say you, Mr. Duncan, were at the wheel."

It is estimated that tons of Enron documents were shredded in a process that continued for over two weeks. "Who knows what was destroyed?" said a disgruntled Enron shareholder who prefers anonymity, "probably records of all those off-the-books partnerships they named after meat-eating birds like Raptor and Osprey."

One person who was talking, but only minimally, was Andersen's CEO, Joseph Berardino, who testified before a House committee on Feb. 5 regarding his company’s accounting relationship with Enron. "I don't have an answer to that, Congressman," he kept repeating to a variety of the investigating lawmakers. "How can I answer you, when I don't have all the facts in front of me?" "Mr. Berardino," said Rep Gary L. Ackerman D-N.Y., "I can't believe you've gotten where you are without knowing anything...but maybe it’s better to be dumb than culpable."

On a personal level I was hoping the firm that's been in existence for 89 years, would still be around long enough to do my taxes. I need to get a few things shredded like my 1099s. But, I probably couldn't afford them anyway, judging by the $47.5 million Enron paid for their services last year. Seems like a lot of money, but maybe, as alleged, they charge more for phony books and vast overstatements of profits. [Ed. note. As of this writing Andersen is in the process of negotiating a merger with another Big-5 accounting firm.]

One Book, One City
Mayor Jim Hahn announced the first book in the One Book, One City LA reading initiative will be the science fiction classic, Fahrenheit 451 by Ray Bradbury. "Our city is home to some of the best literary authors and most diverse communities in the United States," said Mayor Hahn. "'One Book, One City LA' will hightlight some of Los Angeles's greatest cultural treasures - author Ray Bradbury and our great neighborhoods."

Bradbury, who started writing Fahrenheit 451 while living in Venice, CA on pay-by-the-hour typewriters at UCLA, will recieve a star on the Hollywood Walk of Fame on April 1, in recognition of his contributions to literature, film and television."I wrote most of my works in this wonderful city," Bradbury said, "and I am delighted that the Mayor chose my book to help promote the city and [is] encouraging Los Angeles residents to discuss its central themes." The novel, one of Mayor Hahn's favorite books, tells the story of a fireman living in a city where literature is banned and firefighters burn books. "Fahrenheit 451 celebrates the freedom of speech, the value of imagination, and the power of the individual," said Mayor Hahn.

For event at El Portal in April, visit www.lapl.org/F451>
- BC

Studio City Golf & Tennis Update
On Wednesday, March 6th, the City Planning Department held a public meeting at Walter Reed Middle School to hear the community's environmental and cultural impact concerns regarding the proposed development project of a 240 unit senior living facility on 5 acres of the current Studio City Golf and Tennis Recreation Center. The City Planning Dept. will take all comments into consideration. Submit your questions and concerns, in writing, to: Maya Zaitzevsky, Project Coordinator, 200 N. Spring St, Rm 763, LA, CA 90012. - XM

Platinum Live
New Supper Club brings Class Acts and State of the Art Sound System to Studio City
by Vanessa Roveno

Located in Studio City in what was formerly Aftershock and many different venues before that, (check our Feb 28 issue online), newly opened Platinum Live has already been serving celebrities who live in the posh neighborhood. “There really isn’t anywhere else to go. I couldn’t be happier about having an upscale restaurant/music venue right here in my backyard. The only problem is that they close at 11pm,” says a local celeb who prefered to remain anonymous.

Music aficionados and gourmets citywide have even more to look forward to when a half million dollar state of the art sound system will be installed by QSC. Fiber optic lines will be run to a nearby recording/editing house Tidal Wave to edit and broadcast live shows at the spectacular new “club,” making Platinum Live “the most fully equipped venue in the world,” says co-owner Dennis Morgan. Gospel Sunday brunches, unparalled in L.A., begin April 21, and Las Vegas style orchestra Howard Mak will tribute Frank Sinatra and the like - appropriate fare for the humble structure which was Cinnamon Cinder in the 60’s, a teen hang which hosted The Beatles’ first press conference in L.A.

Another local states that the stars loved the place when it was occupied by yet another venue because of the discretion which could be found in the Alibi Room.

Unfortunately, not everyone is happy about the sleek new hotspot. A Notice of Public Protest has been filed against the owners by the Los Angeles Police Department stemming from letters sent by 15-20 local residents, petitions from Concerned Residents of Sunshine Terrace & Studio City Community, the Studio City Residents Association, and Captain Ronald Marbrey of the North Hollywood Operation Support Division of the L.A.P.D., endorsed by two other officers, and 12 of the 15 City Councilmembers voted to keep the place shut down by 11pm every night. A public Hearing will take place on March 28.

Opposition to stop Platinum Live from obtaining the cafe/entertainment show permit exists as well, and purportedly a vp from Universal Studios was present at at least one of the local meetings opposing the permit acquisition. Some of the listed concerns, worded here exactly as they appear on the petition, no editing on our part, are as follows:
#1 There will be increased noise level from extremely loud music both from the club and from car radios, crowd noise and extra loud shouting, laughing and yelling as patron come and leave the location.
#4 Patrons are often drunk are singing, dancing, urinate and regurgitate on the sidewalks, trees, telephone polls and buildings in the adjacent business area.
#5 The problems of prostitution and nighttime disturbances coming form the club will drain police attention away from local residents.
#6 These clubs contribute to the moral decay of our society and are certainly not conductive to responsible behavior.
#8 The proposed Platinum Live Supper Club will have detrimental impact on the surrounding community and will expose children on their way to and from school and the community to inappropriate activity. These complaints were identical to the complaints from a petition filed against previous occupant, Aftershock, says Morgan.

Platinum Live has conformed to all zoning conditions but is requesting only that their hours may be restored to 2pm, closing as the various and legendary venues did since the ‘40s. During the occupancy of former Aftershock, truly a thorn in the side of the community, local petitioners were able to have the zoning conditions modified to limit their hours.

The Valley gets a bad rap - its inhabitants purportedly excessively using the word “like,” a plethora of cheesy malls, etc. But the truth of the matter is that we are a freethinking, affluent, arts-loving community. Now we have the chance of having our own first rate supper club. The village people will hopefully fail in their attempts to limit hours at Platinum Live and mope on back to their favorite Starbuck’s to lick their wounds. The rest of us will get our party hats.

Councilman Tom LaBonge Hosts Hot Topics Forum
On March 21 the 3 hottest topics for Angelenos, the city budget, redistricting, and secession, were discussed in an open forum by experts in a meeting hosted by Council-member Tom LaBonge. Over 200 people assembled at the Petersen Automotive Mus-eum on the Miracle Mile to learn how these issues will affect them and the city at large.

Bill Fujioka, Administrative Officer of the City of L.A., discussed the decline in revenue from last year by $250 million due to the year-long recession. He advised the audience that the City will feel the effects of the financial crisis after last year’s unprecedented growth.

Frank Cardenas, Executive Director of the Citizen Commission on Redistricting, discussed new boundaries of our districts drawn from our most recent census, meant to assure minority representation in voting blocks while keeping “communities of interest” together.

4th District Councilmember Tom La-Bonge discussed the ultimate redistricting, the secession movements of the Valley, San Pedro and Hollywood, which comprises a good third of his own district. The Local Agency Formation Commission will decide if the 3 measures, each having enough signatures to qualify for public vote, will be placed on the General Election Ballot this November. - AM