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.


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