Arizona AG demands documents on Arthur Andersen’s Bermuda captive

Arthur Andersen has caused outrage in Arizona by backing out of a $217 million fraud settlement, apparently because its Bermuda-registered captive was unwilling or unable to cover the loss.The accounting firm then compounded its critics by failing to fully comply with a subpoena duces tecum issued by the Arizona Attorney General on April 2.The subpoena required the production – within 48 hours – of documents showing the financial condition of the Arthur Andersen group and Professional Services Insurance Company Ltd., of Bermuda.