Appeals court tosses out AIG-Gen Re fraud convictions
HARTFORD, Connecticut (AP) A federal appeals court has thrown out the fraud convictions of five former executives from American International Group Inc. and Stamford-based General Re Corp.
The five had been convicted in a $500 million fraud case. But the 2nd U.S. Circuit Court of Appeals on Monday sent the case back to U.S. District Court in Hartford, Conn., for another trial.
Prosecutors had alleged the executives were part of a fraud in which New York-based AIG paid Stamford-based Gen Re in a secret deal to take out reinsurance policies with AIG in 2000 and 2001.
The appeals court found that the trial judge abused his discretion by admitting stock-price data during the trial. It says the judge also gave improper instructions to the jury.
All five executives had been sentenced to prison.