Insurance Executives Convicted on Fraud Charges

Five former insurance executives, including a top official from AIG and a former CEO of insurance giant General Re, were convicted on federal charges Monday. Prosecutors say they schemed to improperly inflate AIG's financial numbers.

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STEVE INSKEEP, host:

NPR's business starts with corporate fraud convictions in the world of insurance.

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INSKEEP: Federal prosecutors are still pursuing cases from the Enron era accounting scandals. And yesterday, in one of the biggest trials, a federal jury found five former insurance executives guilty. They're guilty on 16 counts, including conspiracy, securities fraud, and mail fraud. The executives include former top officials from a couple of companies. One, the world's largest insurance company, AIG - as well as a former CEO of the insurance giant General Re, which is owned by Warren Buffet's Berkshire Hathaway.

These charges come from financial transactions between the two companies. Prosecutors say the businessmen schemed to improperly inflate AIG's financial numbers. The convicted former executives face lengthy prison sentences and fines of tens of millions of dollars.

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