Reply #72: Judge explains venue transfer in AIG-Gen Re fraud case

[UpInArms]

Greenberg's initial statement on fraud: "no impact" :rofl:

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B0682BCB9-DD2F-4F8A-B532-96C47770F486%7D&symbol=

A federal judge in Virginia granted the request of three former General Re executives to transfer their fraud trial to Connecticut in part because trying the case in Virginia would result in a "substantial balance of inconvenience" for them.

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Ferfuson, Monrad, Graham and Milton are facing securities fraud, conspiracy and other charges in connection with what prosecutors have alleged was a scheme to make it falsely appear that AIG had bolstered its loss reserves by $500 million in late 2000 and in 2001.

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Last June, John Houldsworth and Richard Napier - two senior Gen Re executives, pleaded guilty to conspiracy to falsify filings with the Securities and Exchange Commission in connection with the transactions.

At a hearing in New York last week, a state judge granted a 60-day stay on depositions of some witnesses in a separate civil case brought by New York Attorney General Eliot Spitzer against former AIG Chairman Maurice R. "Hank" Greenberg over the insurance giant's accounting.

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Last May, AIG announced it would restate more than four years of its earnings and said, without naming Greenberg directly, that former executives at times were able to "circumvent internal controls over financial reporting."

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