General Reinsurance Corp.”™s former CEO and four other executives reportedly have a deal with prosecutors to dismiss decade-old charges of fraud, after an appeals court overturned their prior convictions.
Gen Re has its headquarters in Stamford and is a subsidiary of Berkshire Hathaway.
Former CEO Ronald Ferguson, former CFO Elizabeth Monrad and two other Gen Re executives were accused of inflating earnings in 2000 and 2001 by setting up sham insurance contracts with an executive at American International Group, who also won on appeal.
According to Bloomberg, a federal judge in Hartford is considering deferred prosecution agreements for the five, with prosecutors agreeing to drop the case in a year”™s time. Each executive would acknowledge that aspects of the transaction were fraudulent and acknowledge that they should have tried to stop it from going forward, according to Bloomberg; and would pay fines of up to $250,000 each.
