Press Releases
Office Of New York State Attorney General Eliot Spitzer


Department of Law
120 Broadway
New York, NY 10271

Department of Law
The State Capitol
Albany, NY 12224

 
For More Information:
212-416-8060
For Immediate Release 
February 24, 2005
BROKER ENTERS GUILTY PLEA IN ONGOING INSURANCE PROBE
Another Senior Marsh Executive Admits to Bid Rigging Scheme

Attorney General Eliot Spitzer said today that a former senior executive of Marsh, Inc. has pleaded guilty to criminal charges in connection with an ongoing investigation of fraud and bid rigging in the insurance industry.

In her guilty plea, the former Marsh executive admitted that during a period from 2001 to 2004, she instructed insurance carriers to submit noncompetitive bids for insurance business, and that such bids were conveyed to Marsh clients under false and fraudulent pretenses. These noncompetitive bids allowed Marsh to control the market, protect incumbent insurance carriers when their business was up for renewal, and maximize profits.

The defendant, who is a former broker and managing director at the company, pleaded guilty before Justice James Yates in New York County Supreme Court to the crime of Scheme to Defraud in the First Degree, a class E Felony, which carries a maximum sentence of 1 1/3 to 4 years incarceration in state prison.

Ten employees at four companies in the insurance industry have now pleaded guilty to criminal charges in the probe. The former Marsh executive is cooperating with the investigation and is expected to testify in future cases, as are the nine other insurance industry employees who previously entered guilty pleas.

Spitzer thanked the New York State Insurance Department for its cooperation in the joint investigation, which is continuing.

The case is being prosecuted by Assistant Attorneys General Michael Roe and Nina Sas of the Criminal Prosecutions Bureau, under the direction of Deputy Chief of the Criminal Prosecutions Bureau Kevin Suttlehan and Chief of the Criminal Prosecutions Bureau Janet Cohn. Investigators Sylvia Rivera and John McManus of the Investigations Bureau, under the supervision of Deputy Chief Investigator Hank Lemons assisted in the investigation.

.



Click here to return to our homepage