Arthur Andersen auditors barred

Nearly six years after the collapse of WorldCom Inc., the Securities and Exchange Commission barred two former Arthur Andersen auditors from practicing before the agency in settlements of claims that they inadequately scrutinized the 2001 earnings as the communications company was defrauding investors.

Melvin Dick, 54, and Kenneth Avery, 41, should have arranged more thorough audits after learning WorldCom executives had reason and opportunity to deceive shareholders, the SEC said Monday.

The two accountants didn’t admit or deny wrongdoing in their settlements.

Dick can apply for reinstatement to practice before the SEC after four years, and Avery can apply after three.

Arthur Andersen, once the fifth-largest U.S. accounting firm, collapsed in 2002 after being indicted for its role in the Enron Corp. scandal. WorldCom filed the biggest bankruptcy in U.S. history that same year after disclosing that it inflated revenue and hid expenses to meet Wall Street expectations. The company is now part of Verizon Communications Inc.