Five found guilty in AIG stock inflation scheme
Excerpt of the news. Read the entire news here.
HARTFORD, Connecticut - Five former insurance company executives were found guilty Monday of a scheme to manipulate the financial statements of the world’s largest insurance company, American International Group Inc.
The defendants, including four former executives including a onetime CEO of General Re Corp., and a former executive of AIG, sat stone-faced as they were convicted of conspiracy, securities fraud, mail fraud and making false statements to the Securities and Exchange Commission.
Prosecutors said they participated in a scheme in which AIG paid Gen Re as part of a secret side agreement to take out reinsurance policies with AIG in 2000 and 2001, propping up its stock price and inflating reserves by $500 million.
Labels: Fraud Charges