General Reinsurance Corp. CEO Joseph Brandon, along with a current and former executive, have received notices from the Securities Exchange Commission warning of a possible civil injunctive violation, the parent company announced.
In a press statement issued today, Berkshire Hathaway Inc., Omaha, Neb., said that Mr. Brandon had received a so-called "Wells notice" in connection with the SEC's investigation of non-traditional insurance products.
Former General Re Senior Vice President Christopher Garand, who retired two weeks ago, and Robert Graham, current assistant general counsel, have also received such notices, said Berkshire Hathaway.
The three face the possibility they will be banned from serving as officers or directors of a public company as well the chance of SEC civil action.
As reported in the May 30 edition of National Underwriter, the SEC has investigated a transaction between General Re and AIG, which allegedly helped AIG inflate its reserves by reinsuring General Re, making AIG's balance sheet look better than it was.
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