September 25, 2006

US Indicts Gen Re and AIG Execs in Finite Reinsurance Matter

United States Attorney Kevin O'Connor announced a superseding indictment of four former Gen Re executives and one AIG senior executive arising from allegations of conspiracy, securities fraud, mail fraud and false statments to the SEC in connection with finite reinsurance transactions in 2000 and 2001. The defendants are accused of using the transactions in order to mislead investors as to AIG's financial situation.

Related charges were contained in a federal grand jury indictment returned in February 2006 in Norfolk Virginia. Venue was transferred to the District of Connecticut in April for the convenience of the parties. Press Release: "Gen Re and AIG Executives Charged in Superseding Indictment" (September 20, 2006).

A copy of the full 49-page indictment, with detailed allegations as the alleged overt acts, is accessible from a link in the press release or here: Superseding Indictment: United States of America v. Ferguson, et al, 3:06-CR-137(PCD)

Earlier references in Unintended Consequences regarding finite reinsurance and these actions include:

Unintended Consequences: Four Indicted in Finite Reinsurance Probe(Feb. 6, 2006)

Unintended Consequences: Wharton's Thoughts on AIG and "finite reinsurance" (April 7, 2005)

Unintended Consequences: "Finite Risk Reinsurance" background online (Nov. 24, 2004)

Unintended Consequences: Spitzer and SEC investigate "finite insurance" (Nov. 16, 2004)

Unintended Consequences: AIG targeted by US Grand Jury, AP reports (Oct. 22, 2004)

Posted by dougsimpson at September 25, 2006 08:22 PM