Valditity of anti-fraud law questioned...

Supreme Court weighs validity of anti-fraud law

WASHINGTON (AP) - The Supreme Court has raised doubts about the validity of part of the anti-fraud law enacted in response to Enron and other corporate scandals early this decade.

The court heard arguments Monday in a case over the composition of the board that was created to tighten oversight of internal controls and outside auditors following accounting scandals at Enron Corp., WorldCom Inc., Tyco International Ltd. and other corporations.

A small Nevada accounting firm and an anti-tax group brought the challenge to the 2002 Sarbanes-Oxley law, arguing that the board created by the law violates the Constitution's separation of powers mandate because the president cannot appoint or remove its members.