Seen at Business Insurance:
All five defendants in the General Re Corp. finite trial have been found guilty on all counts they faced in a case over their roles in allegedly bogus loss portfolio reinsurance transaction from 2000 designed to help American International Group Inc. inflate its loss reserves.
The five defendants—Gen Re Chief Executive Officer Ronald E. Ferguson; Christopher P. Garand, former senior vp in charge of U.S. finite underwriting for Gen Re; Robert Graham, former senior vp and legal counsel for the reinsurer; Elizabeth Monrad, Gen Re’s former chief financial officer; and Christian M. Milton, AIG’s former vp for reinsurance—were found guilty by a jury on various counts of conspiracy to commit securities and mail fraud and making false statements to the U.S. Securities and Exchange Commission.
And meanwhile, many of us have been subjected to painful hours of continuing ed over exactly what constitutes “risk transfer” in the wake of that scandal.