Spitzer: Eight Former Insurance Executives Indicted in Bid-Rigging Probe

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http://ap.tbo.com/ap/breaking/MGBN7S0ANDE.html

ALBANY, N.Y. (AP) - New York Attorney General Eliot Spitzer on Thursday announced that a grand jury has indicted eight former executives of insurance brokerage Marsh & McLennan Companies Inc. on felonies involving bid rigging that cost corporate customers millions of dollars.

The former executives of Marsh & McLennan - the nation's largest brokerage, headquartered in New York - were accused of colluding with executives at major insurance companies to arrange noncompetitive bids. These bids then were given to Marsh & McLennan clients "under false pretenses," according to Spitzer's statement.

"These are very senior executives within the Marsh hierarchy," Spitzer said. "Not only was it wrong, it was harmful to the economy. ... There is simply no responsible argument in favor of rigging bids, stifling competition and cheating."

The defendants were arraigned Thursday in state Supreme Court. All entered innocent pleas and were released pending further court appearances, according to Spitzer and state Insurance Superintendent Howard Mills.