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Feb.25
3:51 PM ET
Monday, 25 Feb 2008
Former Execs at Berkshire Hathaway's Gen Re Convicted in Fraud Trial
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Adam Nadel / AP Warren Buffett and Ron Ferguson, who was then chairman and chief executive officer of General Re, at a 1998 news conference annoucning Berkshire's purchase of Gen Re. Ferguson is one of the five defendants standing trial on charges of orchestrating a sham deal to improperly inflate AIG's reserves in 2000 and 2001. |
] was also convicted by the jury, following a one-month federal court trial in Hartford, Connecticut.All five were accused of creating and hiding an illegal deal to make AIG's reserves look better than they actually were in 2000 and 2001.
The defense in the trial had floated the idea of calling Berkshire Chairman Warren Buffett to the stand, in an effort to show that he knew what the defendants were doing, didn't try to stop them and didn't think there was anything wrong with it. The defense has portrayed the deal in question as a perfectly legal transaction.
Despite the talk, the defense never did call Buffett to the stand, vindicating Warren Buffett Watch's semi-bold prediction made as the trial was getting underway.
Berkshire Hathaway's current price: [US;BRK.A
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