Gen Re, AIG Defendants Reach Deal With U.S. in Fraud Case

Features Reuters

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.

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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.