100 WVIA Way
Pittston, PA 18640

Phone: 570-826-6144
Fax: 570-655-1180

Copyright © 2025 WVIA, all rights reserved. WVIA is a 501(c)(3) not-for-profit organization.
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Insurance Executives Convicted on Fraud Charges

STEVE INSKEEP, host:

NPR's business starts with corporate fraud convictions in the world of insurance.

(Soundbite of music)

INSKEEP: Federal prosecutors are still pursuing cases from the Enron era accounting scandals. And yesterday, in one of the biggest trials, a federal jury found five former insurance executives guilty. They're guilty on 16 counts, including conspiracy, securities fraud, and mail fraud. The executives include former top officials from a couple of companies. One, the world's largest insurance company, AIG - as well as a former CEO of the insurance giant General Re, which is owned by Warren Buffet's Berkshire Hathaway.

These charges come from financial transactions between the two companies. Prosecutors say the businessmen schemed to improperly inflate AIG's financial numbers. The convicted former executives face lengthy prison sentences and fines of tens of millions of dollars. Transcript provided by NPR, Copyright NPR.