A deal has been reached to prevent a new criminal fraud trial for former executives of American International Group Inc. and Berkshire Hathaway Inc. unit Gen Reinsurance, federal prosecutors said on Friday.
“The parties have reached agreements to resolve this matter,” prosecutors said in a filing in Connecticut federal court, adding that further details were expected later in the day.
In 2008, former Gen Re Chief Executive Ronald Ferguson, Chief Financial Officer Elizabeth Monrad, Senior Vice President Christopher Garand and Assistant General Counsel Robert Graham, as well as AIG Vice President Christian Milton, were convicted of engineering a reinsurance deal to fraudulently boost AIG’s reserves.
In August 2011, a federal appeals court threw out the convictions and ordered a new trial, citing errors by the judge in the case. The five had been sentenced to anywhere from one to four years in prison, though they were all out on bail, pending their appeals.
Last February, a new judge overseeing the case set a January 2013 date for their retrial.
The case is U.S. vs. Ferguson et al, U.S. District Court, District of Connecticut, No. 06-00137.
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