Former General Re, AIG Executives Could Face Life in Prison

November 5, 2008

Five former insurance executives tied to American International Group face up to life in prison under a financial manipulation scheme.

The potential lengthy prison terms are the result of a federal judge’s ruling that AIG shareholders lost more than $500 million under the scheme.

The ruling was issued by Judge Christopher Droney in New Haven, Conn. The guideline range and a sentencing date have not been set yet.

Four former executives of General Re Corp. and a former executive of AIG were convicted in February of conspiracy, securities fraud, mail fraud and making false statements to the Securities and Exchange Commission.

General Re is part of Berkshire Hathaway, which is led by billionaire investor Warren Buffett of Omaha, Neb.

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