Former General Re Executive Given Probation - The Constantine Report    
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Former General Re Executive Given Probation

June 25, 2009 0

By DAVE COLLINS

Jun 16, 2009

HARTFORD, Conn. (AP) — A former business executive has been sentenced to two years probation for his role in an accounting scandal involving insurer American International Group Inc.

John Houldsworth, the former chief executive officer of an Irish affiliate of Berkshire Hathaway's General Re, was sentenced Tuesday in federal court in Hartford. He was also fined $5,000 and ordered to perform 400 hours of community service.

Holdsworth had pleaded guilty in June 2005 to conspiring to commit securities fraud and provided key testimony against other defendants. Prosecutors say AIG paid Stamford-based Gen Re in a secret deal to take out reinsurance policies with AIG in 2000 and 2001, leading to propped up stock prices and inflated reserves that cost AIG shareholders more than $500 million.

THIS IS A BREAKING NEWS UPDATE. HARTFORD, Conn. (AP) — A federal judge in Connecticut is expected to sentence a former business executive in connection with an accounting scandal at insurer American International Group Inc.

John Houldsworth is the former chief executive officer of an Irish affiliate of Berkshire Hathaway's General Re. He has asked the judge for probation and no fines. Houldsworth pleaded guilty to conspiracy to falsify SEC filings. Prosecutors say AIG paid Stamford-based Gen Re in a secret deal to take out reinsurance policies with AIG in 2000 and 2001, leading to propped up stock prices and inflated reserves that cost AIG shareholders more than $500 million.

Prosecutors are asking for leniency for Houldsworth because his cooperation helped convict five other executives.

http://www.google.com/hostednews/ap/article/ALeqM5itlcWHzna-kmOXGHBGXSSrQS__xwD98RS14G1

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