Civil and criminal complaints are expected to be announced today against three former top executives at the Berkshire Hathaway subsidiary General Reinsurance Corp., and a former senior executive of the American International Group, according to people with direct knowledge of the charges.
Those expected to be named in the indictment and civil charges are Ronald E. Ferguson, General Re's former chief executive; Elizabeth A. Monrad, the former chief financial officer; and Robert Graham, the former general counsel.
Christian Milton, former head of AIG's reinsurance operations, is also expected to be named in the charges.
Since early last year, federal prosecutors have been investigating General Re and AIG for financial improprieties relating to transactions that artificially inflated AIG's reserves by $500 million in 2000 and 2001.
New York Attorney General Eliot Spitzer is also investigating AIG and has filed civil fraud charges against Maurice R. "Hank" Greenberg, former chairman and chief executive, and Howard I. Smith, AIG's former chief financial officer.
Federal prosecutors in Manhattan are also investigating whether Greenberg may have tried to manipulate AIG's share price shortly before he stepped down from the company's helm. Greenberg has denied any wrongdoing; AIG has been expected to seek a settlement with federal and state regulators.
"I've heard nothing from the government," said Frederick P. Hafetz, a lawyer representing Milton. "If indicted, Milton will vigorously contest the charges, and I'm confident he will be vindicated at trial."
Lawyers for Ferguson and Monrad did not return phone calls seeking comment. Graham could not be reached.
The complaints raise questions about the potential impact on Warren E. Buffett, the billionaire investor who controls Berkshire Hathaway, as well as on Greenberg.
Buffett has not been charged with any wrongdoing, and prosecutors have described him as nothing more than a cooperating witness. He could not be reached for comment.
Lee S. Wolosky, an attorney representing Greenberg, declined to comment.
In September, the SEC notified Joseph Brandon, General Re's current chief executive, that it planned to file a civil fraud complaint against him in connection with its wide-ranging investigation of insurance industry abuses. To date, the SEC has not announced any charges against Brandon.
Brandon and his lawyer did not return phone calls seeking comment.
