Five ex-insurance company executives from AIG and General Re were convicted Monday of conspiracy, securities fraud, mail fraud and making false statements to the SEC in a scheme to manipulate the financial statements of the world's largest insurance company, American International Group. Prosecutors said the executives took part in a scheme in which AIG paid Gen Re as part of a secret agreement to take out re-insurance policies with AIG, propping up its stock price and inflating reserves by $500 million.
Former Executives Found Guilty in Scheme to Manipulate AIG Financial Statements
The Associated Press
February 26, 2008