GenRe Reaches Deal With Justice Department in AIG Case (pay small fee not to be charged)

[Robbien]

Source: WSJ

A reinsurance firm owned by Warren Buffett's Berkshire Hathaway Inc. reached a $92 million settlement with the federal government that will allow the firm to avoid prosecution for its role in a fraud scheme involving American International Group Inc. As part of the deal, Berkshire agreed to several corporate-governance concessions.

Berkshire's General Re Corp. acknowledged its role in the fraud and agreed to pay $60.5 million toward restitution for burned investors.

It also will pay $12.2 million to settle charges by the Securities and Exchange Commission in connection with the fraud and for helping another company manipulate and falsify its .../end of free content

Read more: http://online.wsj.com/article/SB10001424052748704320104575015131135869288.html

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The actual SEC release
http://sec.gov/news/press/2010/2010-10.htm

says the fraud was $800,000,000. GenRes paid $12.2mil not to be charged with fraud. The fee is not even one percent of the total fraud.

That sure will stop them from doing such criminal activities next tiem.

[shirlden]

1. Lesson Learned

Before you commit fraud be sure you incorporate yourself. That way you only have to pay a small fine instead of going to prison. Works for me............if I wanted to commit fraud.

[Name removed]

2. Deleted message

Message removed by moderator. Click here to review the message board rules.

[dixiegrrrrl]

3. And they get to deduct it as a business expense!

Cost of doing business.

So, one law for rich, one for poor.
As if there any doubt who owns the Just Us Dept.