HARTFORD, Conn. (AP) – A former executive faces sentencing in connection with an accounting scandal that authorities say cost shareholders of American International Group Inc. more than $500 million.
John Houldsworth, former chief executive officer of Berkshire Hathaway’s General Re affiliate, Cologne Re Dublin, is scheduled to be sentenced Tuesday in Hartford.
Prosecutors say AIG paid Stamford-based Gen Re in a secret deal to take out reinsurance policies with AIG in 2000 and 2001. They say the scheme propped up AIG’s stock prices and inflated reserves by $500 million.
Houldsworth pleaded guilty in 2005.
Federal prosecutors are asking for a reduced sentence for Houldsworth, saying his extraordinary cooperation helped convict five other executives in the case.
Send questions/comments to the editors.
Success. Please wait for the page to reload. If the page does not reload within 5 seconds, please refresh the page.
Enter your email and password to access comments.
Hi, to comment on stories you must . This profile is in addition to your subscription and website login.
Already have a commenting profile? .
Invalid username/password.
Please check your email to confirm and complete your registration.
Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.
Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.