Sunday, June 24, 2012

Ex-execs in AIG settlement

Five former insurance executives accused of engineering a fraudulent reinsurance transaction to mask a drop of reserves at American International Group reached a deal with the government to avoid prosecution on criminal charges, according to a court filing.

The former execs agreed to pay fines of between $100,000 and $250,000, and in exchange federal prosecutors will agree to dismiss the charges against them in one year, according to the filing.

The agreement is still subject to a judge’s approval.

Under the agreement filed yesterday, former General Re CEO Ronald Ferguson agreed to a fine of $200,000, which has already been paid.

Ex-AIG Vice-President Christian Milton agreed to a $200,000 fine, also already paid. Former General Re exec Chris Garand agreed to pay a $150,000 fine, ex-General Re exec Elizabeth Monrad agreed to a $250,000 fine and former General Re exec Robert Graham signed off on a $100,000 fine.

American International Group, criminal charges, Christian Milton, General Re, Ronald Ferguson, insurance executives

Nypost.com

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