Opinion ID: 767958
Heading Depth: 3
Heading Rank: 2

Heading: Shredding of the 1983 Allocation Audit

Text: 45 At trial, evidence was presented that J.D. Power, an independent automobile industry analyst and author, informed the then executive vice president of American Honda of rumors of wrongdoing at the company. American Honda's then president Tetsuo Chino ordered an internal audit of the automobile allocation system. This was known to at least one of the defendants at the original trial. The audit apparently showed flaws in the allocation system that left the system ripe for abuse and recommended changes to that system. What was newly discovered was that the audit was never completed and the initial results were shredded. It was far from usual practice to shred the results of a partially-completed audit. The evidence showed that the shredding was done after Smoot told the auditors that if the audit did not exist, his life would be much simpler. Like King Henry II's comments about Thomas a Becket, Smoot's instructions were followed by subordinates.