A US jury has found Ronald Ferguson, former boss of reinsurance firm General Re, and four other insurance executives guilty of fraud for their part in the accounting scandal at the American International Group, and they could face fines and jail terms.
Elizabeth Monrad, former General Re chief financial officer, Robert Graham, former assistant general counsel, Christopher Garand, former senior vice president and Christian Milton, former AIG head of reinsurance were convicted alongside Ferguson, BBC News reports.
They were convicted in relation to a deal between AIG and General Re in 2000. Prosecutors accused them of misleading investors by helping AIG to fraudulently inflate its loss reserves by $500m (£254m), making its financial results look better than they were.
AIG has previously admitted to overstating its profits by 10% from 2000 to 2004 and agreed to pay more than $1.6bn to settle state and federal charges of accounting abuses in 2006.
Further reading:
PwC unravels ‘material weakness’ in AIG’s CDS
Comments