Log In

Reset Password
BERMUDA | RSS PODCAST

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.

You must be Registered or to post comment or to vote.

Published August 02, 2011 at 2:00 am (Updated August 02, 2011 at 9:29 am)

Appeals court tosses out AIG-Gen Re fraud convictions

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon