Spitzer Targets Insurance Firms

AFX News
October 14, 2004


New York Attorney General Eliot Spitzer is set to unveil a major action against a group of brokerage firms that includes American International Group, Hartford Financial, ACE, Marsh & McLennan, and Munich American Risk Partners. Two industry executives reportedly have agreed to plead guilty and cooperate with prosecutors.


Spitzer Plans Action Against Insurance Firms

In his latest move in a high profile campaign against corporate wrongdoing, New York Attorney General Eliot Spitzer is set to unveil a major action against several of the country's largest insurance brokers Thursday, according to a broadcast report.

Cable TV channel CNBC reported the companies involved include American International Group, Hartford Financial, ACE Ltd., Marsh & McLennan and Munich American Risk Partners.

The report also said two industry executives have agreed to plead guilty to charges and cooperate with prosecutors. Shares of the four companies named were lower in Thursday morning trading.

CNBC said the plea arrangements with the executives are being worked out. The charges allege the brokerage companies and executives agreed to steer business to certain underwriters and to rig the bidding process, CNBC reported.

And as in Spitzer's recent prosecutions in the mutual fund industry, internal e-mail messages from companies involved will play a role in the case.

© 2005 AFX News Limited
 

Click here to return to our homepage