Defense Rests its Case in Gen Re Trial
On Thursday the defense lawyers in the five-week General Re Corp. finite trial rested their cases after calling several character witnesses and introducing a handful of documents to bolster their positions.
With the evidentiary phase of the trial over, U.S. District Judge Christopher F. Droney denied a defense motion to exclude dozens of e-mails and recorded telephone conversations among the defendants that were introduced by prosecutors. Judge Droney also denied a motion for a mistrial by former Gen Re Chief Executive Officer Ronald E. Ferguson.
Closing arguments in the case are scheduled for next week.
Federal prosecutors allege that five former Gen Re executives alleging they engineered the loss portfolio deal to help AIG artificially inflate its loss reserves by $500 million. Prosecutors allege that the deal actually transferred no risk, and the defendants agreed that AIG would secretly refund a $10 million premium to Gen Re and pay the reinsurer a $5 million fee for entering the deal.
Source: Source: Business Insurance | Published on February 8, 2008
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