Tuesday, February 26, 2008
Five insurance executives -- one from AIG, 4 from General Re -- were convicted for their participation in sham reinsurance deals to bolster AIG's loss reserves. Former CEO Maurice Greenberg, who resigned in 2005 because of the scandal but remains a large shareholder, was an unindicted co-conspirator, and prosecutors said they plan to "work up the ladder." Gen Re is owned by Warren Buffett's Berkshire Hathaway, whose name the defense invoked in the trial, but who did not testify. WSJ, Jury Convicts Five of Fraud In Gen Re, AIG Case; NYTimes, Guilty Verdict for 5 in A.I.G. Case.