Five former executives of Berkshire Hathaway Inc unit Gen Re and insurer AIG Inc have entered into deferred prosecution agreements to resolve the six-year-old criminal fraud case against them, federal prosecutors said on Friday.

As part of the deal, former Gen Re CEO Ronald Ferguson admitted that elements of a reinsurance transaction between Gen Re and AIG were fraudulent. Ferguson will pay a $200,000 fine and the government will dismiss the indictment against him in a year if he stays out of trouble.