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Jury Convicts Ex-Insurance Execs in Fraud

Posted Feb 26, 08 9:48 AM CST in Crime & Courts,  Business 

(Newser) – A federal jury yesterday convicted five former insurance executives of fraud, conspiracy, and making false statements to the Securities and Exchange Commission as part of a scheme to deceive investors, Bloomberg reports. The convictions stem from a sham transaction in 2000 between General Reinsurance Corp. and American International Group that added $500 million in loss reserves to AIG’s accounts to soothe investor concerns.

"These five defendants made the choice to lie to AIG's investors and to deprive them of the opportunity to make informed decisions about their stock," said the lead prosecutor. Former General Re CEO Ronald Ferguson and CFO Elizabeth Monrad were among those found guilty and face 20-year jail terms. They plan to appeal. Warren Buffett’s Berkshire Hathaway owns General Re. He faced no charges.

Source Bloomberg

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Christopher P. Garand, a former executive with Berkshire Hathaway's General Re Corp., and an unidentified woman arrive at U.S. District Court in Hartford, Conn., Monday, Jan. 7, 2008. Garand, three other...   (Associated Press)
Former General Re CEO Ronald Ferguson, center, arrives at U.S. District Court in Hartford Conn., Monday, Jan. 7, 2008. Ferguson is one of four former executives of Berkshire Hathaway's General Re Corp....   (Associated Press)
Elizabeth Monrad, former chief financial officer for Berkshire Hathaway's General Re Corp., arrives at U.S. District Court in Hartford, Conn., Monday, Jan. 7, 2008. Monrad, three other former General...   (Associated Press)
Billionaire investor Warren Buffett speaks in New York in this June 26, 2007 file photo. Billionaire investor Warren Buffett on Tuesday, Feb. 12, 2008 said that he has offered to help out troubled bond...   (Associated Press)
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SEC  • fraud  • Warren Buffett  • AIG  • Berkshire Hathaway  • American International Group  • Hank Greenberg  • General Re Corp  • General Reinsurance


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