Final arguments heard without Buffett being called to the stand
The jurors in the Gen Re/AIG trial have heard the closing arguments as the reinsurance legal case of the year wraps up in the US.
Prosecutors allege that four former executives of Berkshire Hathaway’s General Re and one former executive of American International Group (AIG) conspired to commit fraud.
Jurors were told by Assistant US Attorney Eric Glover that evidence in the case, including emails and phone conversations, that the five defendents engineered a loss portfolio reinsurance deal that facilitated AIG inflating its loss reserves by $500m between 2000 and 2001.
Ronald Ferguson, GenRe's former chief executive is charged along with four other executives - Robert Graham, former Gen Re senior VP and legal counsel, Christopher Garand, former senior VP, Elizabeth Monrad, former chief financial officer, and Christian Milton, AIG’s former VP for reinsurance.
The prosecution charges that the deal appeared to transfer risk, but in fact AIG was not billed for losses and in fact would covertly refund Gen Re’s premium of $10m and also pay Gen Re a $5m fee.
The trial will close with the defence arguments on Thursday without Berkshire Hathaway president and CEO Warren “Oracle of Omaha” Buffett being called to the stand, despite being implicated by a witness.
