A former senior executive of General Re has agreed to settle with U.S. regulators in a probe of transactions involving American International Group Inc., a lawyer for the executive said Monday.
John Houldsworth, former chief executive of General Re unit Cologne Re, agreed to plead guilty to one count of conspiring with others to misstate certain AIG financial statements and to cooperate with the Justice Department and the Securities and Exchange Commission, said his attorney Larry Byrne.
“John is cooperating fully with the US DOJ and SEC and accepts full responsibility for his role in these matters. He deeply regrets his action in working with others to assist in this scheme,” said Byrne in a statement.
Billionaire Warren Buffett’s Berkshire Hathaway Inc. is the parent of General Re.
Houldsworth lives and works in Ireland, said Byrne, a partner at the law firm of White and Case.
AIG, a large reinsurer, has been under investigation for months by federal regulators and the New York state attorney general’s office over questionable transactions.
Legal documents charging Houldsworth allege Maurice Greenberg, former AIG CEO, asked a senior executive at General Re “to assist in a scheme that would provide AIG with $500 million in reserves on a no-risk basis in order to make AIG’s financial picture appear brighter,” said Byrne’s statement.
An SEC spokesman declined to comment.
