The 10-month trial of two former Marsh insurance brokers resumed today with defense requests that the judge clarify the larceny counts if he does not dismiss the charges against them.
Defense attorney Richard Spinogatti requested New York Supreme Court Judge James A. Yates clarify the charges of larceny against defendants William Gilman and Edward McNenney, should he not dismiss the charges against the defendants.
The defense has made a motion for dismissal of the charges, which Judge Yates has yet to rule on. He is hearing the case without a jury.
Mr. Gilman, a former executive marketing director and managing director for Marsh, and Mr. McNenney, former Global Placement Excess Casualty director and managing director, were originally charged in a 16-count indictment with scheming to defraud, restraint of trade and competition, and grand larceny related to bid-rigging and steering of commercial insurance clients.
Three of the larceny counts were tossed out early on in the trial, leaving 13 counts.
Judge Yates said he would hear oral arguments Wednesday concerning the defense’s motion to dismiss. Defense witnesses are scheduled to begin testimony Friday.
Mr. Spinogatti, an attorney with the law firm Proskauer Rose, said the defense plans to call two witnesses. One was described as an expert in underwriting and brokering. The second will be Mr. Gilman.
The two Marsh executives were among eight implicated in a scheme back in 2005 to steer insurance contracts to preferred insurers in exchange for lucrative kickbacks.
The prosecution contends that because the defendants did not release the accounts to an open insurance market, costs were inflated and their contractual rights were stolen.
In an interview with Robert J. Cleary, an attorney with the law firm Proskauer Rose, representing Mr. Gilman, said the defense claims the two did nothing wrong. In fact, they were benefiting clients by finding coverage in a very difficult market (see NU Online, April 19).
The defense portion of the trial is expected to last about three weeks, Mr. Cleary has said.