The Securities and Exchange Commission has notified former General Reinsurance Corp chief executive Ronald E. Ferguson, that he could face civil charges as a result of an inquiry into deals involving improper accounting, GenRe parent Berkshire Hathaway Inc. said.
Mr. Ferguson, who quit his post Oct. 1, 2001, was given an SEC Wells notice informing him that its staff is considering a recommendation that he be charged with securities violations. Under Wells provisions the target of the notice may respond before SEC staff makes its recommendation.
Mr. Ferguson is the fourth former or current GenRe executive to receive a Wells notice. Last month, Berkshire said Gen Re's current CEO, Joseph Brandon; a senior vice president, Robert Graham; and a retired Gen Re senior vice president, Christopher Garand, also had received Wells notices.
Berkshire, said in a statement was informed about the notice by Ferguson's legal counsel. According to the announcement Ferguson had been consulting for General Re and some of its
General Re has been under investigation over finite reinsurance transactions with the insurer American International Group Inc. and with Virginia-based Reciprocal of America, a former liability insurer of doctors, hospitals and lawyers.
AIG in a restatement earlier this year acknowledged that its accounting for a General Re deal was improper. Richard Napier, a former Gen Re senior vice president, pleaded guilty in June to conspiring to file false financial reports to improve AIG results. Also pleading guilty was John Houldsworth, a former chief executive at an Irish subsidiary of Gen Re
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.