HARTFORD, CONN.--Prosecutors and a defense attorney clashed here today over the amount of losses and number of victims impacted by a scheme to manipulate American International Group financial statements.
The occasion was a pre-sentence hearing in U.S. District Court for five insurance executives convicted of a role in a sham reinsurance transaction between AIG and General Reinsurance designed to make AIG reserves look better.
Federal prosecutors said that the fraudulent transaction caused stockholders a loss of between $543 million and $1.4 billion and the victimized investors, in addition to 154 institutional groups, included persons who held mutual funds with AIG stock.
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