Posted on 25 Jun 2012
Five former executives of the American International Group and Gen Re, a Berkshire Hathaway unit, admitted on Friday that they had conducted a fraudulent reinsurance transaction as part of a deal to end a years-long criminal case against them. All five entered into deferred prosecution agreements, meaning their indictments are to be dismissed in a year.
They also agreed to fines ranging from $100,000 to $250,000. In 2008, a former Gen Re chief executive, Ronald Ferguson; the chief financial officer, Elizabeth Monrad; the senior vice president, Christopher Garand; and the assistant general counsel, Robert Graham; and an A.I.G. vice president, Christian Milton, were convicted of engineering a reinsurance deal to fraudulently increase A.I.G.'s reserves. Those convictions were thrown out by a federal appeals court in 2011 but a new trial was scheduled.