Lawyer: General Re exec to plead guilty in AIG case

posted on:
July 7, 2005



An executive of Berkshire Hathaway Inc.’s Gen Re insurance unit will plead guilty later this week to a criminal charge that he helped rival American International Group Inc. exaggerate its finances and will cooperate in the continuing investigation, his lawyer said Monday.

John Houldsworth, 46, will plead guilty to one count of conspiring with others to misstate the financial statements of AIG, the nation’s biggest insurance company, his lawyer, Larry Byrne, said in a statement.

Houldsworth, who was CEO of Cologne Re Dublin, a General Re unit, from May 1990 to June 2001, would be the first to plead guilty in the multiple probes of whether AIG manipulated its finances. He is on paid leave at General Re.

In a separate civil complaint filed in U.S. District Court in Manhattan on Monday, the SEC accused Houldsworth and other senior Gen Re executives of aiding and abetting AIG’s securities fraud.

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