A row has broken out after a European-based company has claimed to have resurrected the Arthur Andersen brand, more than three years after a US tax consultancy also laid claim to the Andersen name and announced the development of a global network
French businessman Stéphane Laffont-Réveilhac has published a LinkedIn post describing himself as ‘global managing partner’ and announcing the rebirth of Arthur Andersen, which collapsed following the Enron accounting scandal in the early 2000s.
Laffont-Réveilhac, whose CV includes an MBA from the University of Michigan, but no declared accountancy qualification, said in a statement: ‘As from of March 1 2017, it is a reality: Arthur Andersen is reconstituted, with 26 offices on five continents and in 16 countries.’
The announcement says Arthur Andersen has offices in the US (Chicago, Houston, New York, San Francisco), Europe (Cyprus, France, Greece), India, Brazil, Middle East (Saudi Arabia, Bahrain, Dubai, Kuwait, Lebanon, Oman, Qatar), Egypt, Indonesia and Nepal.
The latest announcement follows a preliminary statement in June of last year, when the same European group launched what it called its ‘international affiliation campaign’ for membership in its new Arthur Andersen network.
It stated this would proceed in two phases, with the first affiliation stage lasting from 2016–2019 and involving the vetting of new affiliates.
It said: ‘Membership in the Arthur Andersen network is based on the guarantee that each member will be committed to Arthur Andersen’s values and standards of quality.’
This is then to be followed from 2020 by the integration phase which the group said ‘will expand network integration towards full partnership in order to strengthen unity, optimize customer service and share in the returns on our efforts.’
However, in September 2014 the US tax consultancy Wealth & Tax Advisory Services (WTAS), which was set up in 2002 by CEO Mark Vorsatz and 22 former Arthur Andersen partners, rebranded as Andersen Tax.
At the time, Vorsatz said: ‘We recognise that embracing our new name is a bold move. However, we plan to reclaim a cherished legacy of integrity and independence that have served as the foundation of both WTAS and Arthur Andersen.’
Vorsatz went on to say Andersen Tax was a member of the international entity his firm was creating called Andersen Global.
In an email sent to US media following the French announcement, Vorsatz stated: ‘They are not affiliated and do not have any rights to the name.
‘We purchased the rights to the Andersen brand in the US and worldwide, and have filed trademarks in over 50 jurisdictions. We have filed an action against them in France to require that they cease and desist use of the name. Also, to the best of our knowledge, they have no viable business in any locations.’
Andersen Tax does not carry out any audit work. It is located in 19 US cities and has a presence in Europe, Latin America and the Middle East through its international association of member firms, Andersen Global, with operations in 58 locations currently
In the latest briefing, Laffont-Réveilhac says after receiving more than 200 candidacies since the launch of the campaign for affiliation last June, interviews for selecting its first members were conducted in Paris and around the world.
Discussions are also underway for setting up offices in China, Canada, Australia, Israel, Russia and in a number of countries in the EU, Asia and South America.
Laffont-Réveilhac said: ‘In each country, we are setting up an inter-professional member firm with high-quality players who are fully up to meeting the current needs of clients with a focus on a vision of the future, while maintaining the spirit and historical values of our historic firm founded in 1913 in Chicago.’
He claimed that since 2013, the firm has been reconstructing ‘on the basis of an innovative business model and a sound ethical, governance and legal framework’.
‘Arthur Andersen aims to double our presence around the world by the end of 2017,’ Laffont-Réveilhac said.
Carlo Brusa, partner, spokesperson and pilot of the project, said: ‘Our firm is the rightful holder of the ‘Arthur Andersen’ and ‘Andersen’ historical trademarks, logos, visuals and slogans at a global level and are systematically instituting all legal initiatives necessary to defend our network and secure its development.’
Véronique Martinez, partner, said: ‘We have a moral responsibility of success and loyalty towards the values and alumni, both partners and employees, of the firm that disappeared from the business world in 2002. Arthur Andersen needs to become once again a synonym for world excellence in professional service.’
Report by Pat Sweet
