NU Online News Service, May 9, 1:27 p.m. EDT–The Securities and Exchange Commission plans to file a civil securities fraud complaint against a General Re executive, according to a statement from its parent company.
In the first quarter financial report of Omaha-based Berkshire Hathaway Corp. released Friday, it was reported that a senior vice president of General Re received a "Wells Notice" on May 2 from the staff of the SEC in connection with its investigation.
A spokeswoman for the Stamford, Conn.-based company declined to comment on the matter.
The New York Times reported this morning the target of the notice is senior executive Richard Napier.
The newspaper reported that Mr. Napier worked closely with a senior executive at American International Group on a transaction said to have artificially inflated the company's reserves.
In its quarterly report Berkshire acknowledged it is under investigation from a wide variety of state and federal investigators.
It also disclosed for the first time that the company has been targeted by Britain's Financial Services Authority, which told General Re April 15 it is investigating its affiliate, the Faraday Group, as well as a former officer of another affiliate, Cologne Reinsurance, based in Dublin about non-traditional insurance products.
"Berkshire cannot at this time predict the outcome of these investigations and is unable to estimate a range of possible loss," the report stated.
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