Former Gen Re exec gets probation
A former executive of Berkshire Hathaway's General Re has been sentenced to two years probation for his role in an accounting scandal that cost shareholders of insurer American International Group Inc. more than $500 million.
A former executive of Berkshire Hathaway’s General Re has been sentenced to two years probation for his role in an accounting scandal that cost shareholders of insurer American International Group Inc. more than $500 million.
Richard Napier was also fined $10,000 by a federal judge today in Hartford. Napier, who pleaded guilty to securities fraud conspiracy in 2005, apologized in court.
Prosecutors say Napier was a key witness who helped convict five top executives.
Prosecutors say AIG paid Stamford-based Gen Re in a secret deal to take out reinsurance policies with AIG. They say the bogus deal made it look like Gen Re was going to pay AIG $500 million in premiums, but Gen Re paid none and receive $5 million from AIG.
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