Five former insurance execs convicted of fraud
Former insurance execs are convicted of fraud over their part in the accounting scandal at AIG
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
AIG to pay record fee in SEC settlement