General Re and AIG executives face charges

Three former top executives from General Reinsurance, as well as a former senior executive of AIG are to face civil and criminal charges in the US today, according to reports.

The individuals said to be named in the complaints, to be announced by the Justice Department and the Securities and Exchange Commission, are Ronald E. Ferguson, General Re's former chief executive; Elizabeth A. Monrad, the former chief financial officer; and Robert Graham, the former general counsel. Christian M. Milton, the former head of A.I.G.'s reinsurance operations, is also expected to be named in the complaints.

Berkshire Hathaway subsidiary, General Re, and AIG have been investigated for financial improprieties relating to transactions that artificially inflated AIG's reserves by $500m in 2000 and 2001.

The reports said that New York attorney general Eliot Spitzer is also investigating improprieties at AIG and has filed a civil fraud complaint against AIG and its former chief executive, Maurice Greenberg, as well as the former chief financial officer, Howard ISmith.

Federal prosecutors in Manhattan are also investigating whether Greenberg may have tried to manipulate AIG's share price shortly before he stepped down from the company's helm.

Greenberg has denied any wrongdoing; AIG has been expected to seek a settlement with federal and state regulators.