General Re's former chief executive Ronald Ferguson and four other executives have struck a deal with the US government to prevent a second criminal trial over allegations of creating fake reinsurance transactions to strengthen American International Group’s stock price.
The US prosecutors filed deferred prosecution agreements with Ferguson, three former Gen Re executives and one ex-AIG executive in which each "recognises that aspects" of the reinsurance transactions were "fraudulent", as reported by Financial Times.
As per the deferred prosecution agreements, which needs court approval, the government will not impeach them if they do not violate the US laws for a period of one year.
Ferguson agreed to compensate $200,000 as per the verdict announced in 2008 while the other executives also agreed to pay fines.
The deferred prosecution agreement resolves the case, which charges them for conspiracy, securities fraud, mail fraud and lying dates back to deals struck between Gen Re and AIG in 2000.