Alexandria, Va.–Three former General Reinsurance executives andone formerly with American International Group pleaded innocent infederal court today to charges they helped AIG improperly bolsterearnings reports.

Despite efforts by their lawyers to secure a delay untilSeptember, trial for the four was set for May 22 in Alexandria,Va.

The four are facing a 13 count indictment, including conspiracy,securities fraud, false statements to the SEC, wire fraud and mailfraud.

The defendants are:

o Ronald Ferguson, former chief executive officer at Gen Re, asubsidiary of Berkshire Hathaway.

o Betsy Monrad, Gen Re's former chief financial officer.

o Robert Graham, former Gen Re assistant general counsel.

o Christian Milton, AIG's former vice president ofreinsurance.

“No one is more looking forward to a trial in this matter thanBetsy Monrad,” her lawyer, Paul Shechtman of Stillman and Friedmanin New York, said after the arraignment. “Virginia moves fast, butwe'll be ready.”

Prosecutors and other defense counsel declined comment after thearraignment. U.S.District Court Judge Gerald Bruce Lee set asidefour weeks for the jury trial.

The charges revolve around allegations that AIG and Gen Reexecutives engaged in a scheme involving bogus finite reinsurancearrangements designed to improve AIG's financial picture to impresssecurities analysts and sustain its stock performance.

In addition to the indictment by a federal grand jury inNorfolk, Va., the four were also hit with a civil suit by the U.S.Securities and Exchange Commission.

The deals at issue, according to the indictment, began in 2000after AIG stock prices dropped and the company encountered negativeanalyst reports.

According to a previous filing in a guilty plea last year byJohn Houldsworth–former CEO for Gen Re subsidiary Cologne ReDublin–Maurice Greenberg, AIG's former chairman and CEO, called Mr.Ferguson and asked if Gen Re could lend AIG up to $500 million inreserves on a short-term basis through a loss-portfolio transferwithout transferring any risk of loss to AIG.

Mr. Greenberg so far has not been charged in the case, althoughprosecutors say the probe is continuing.