Five found guilty in AIG stock inflation schemeI cannot help but observe that most of the white-collar crimes committed by top executives are in manipulation of financial statements. Just read this news about the conviction of the executives of the largest insurance company.
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