All five former executives of Gen Re and AIG charged in a criminal trial in federal court in Hartford, Connecticut were convicted on all counts in a trial in which it was alleged that certain reinsurance transactions fraudulently added $500 million to AIG's loss reserves. Former AIG Chief Executive Hank Greenberg was named in the case as an unindicted conspirator. The transactions were entered into after AIG's stock price fell on concerns over its loss reserve. The charges included conspiracy, securities fraud, mail fraud and making false statements to the SEC. Sentencing is set for May 15, 1008. United States v. Ferguson, Case No. 06-cr-137 (USDC D. Conn. Feb. 25, 2008).
This post written by Rollie Goss.