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Settlement possible in AIG fraud case

District court agreed to delay pretrial proceedings due to settlement talks

Sometimes, you get a do-over. Defendants in a criminal case that alleges American International Group (AIG) fraudulently inflated its loss reserves through a fake reinsurance transaction got a second chance when their convictions were overturned due to a judge’s error. And now it looks like they may settle, and never have to see the inside of the clink.

The defendants include the former AIG vice president and four former executives from the Berkshire Hathaway company General Re Corp. They were accused of engineering the reinsurance transaction, which led AIG CEO Maurice Greenberg to leave the company in 2005.

In light of the settlement talks, which the companies disclosed in a court filing on Thursday, the district court has agreed to delay some of the pretrial proceedings. The trial is still scheduled for Jan. 22, 2013.

Read more at Thomson Reuters

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