In a convincing victory for justice, the former CEO of a Gen Re subsidiary was sentenced to the equivalent of a mild warning from a substitute teacher for his part in defrauding AIG investors of $597 million. John Houldsworth pleaded guilty in 2005 to conspiracy to commit securities fraud and then testified on the government's behalf to help convict 5 other executives involved in the fraud. In light of his "truly extraordinary" cooperation and heartfelt apology, Houldsworth's sentence was a crushing 2 years probation, $5,000 fine and 400 hours of community service.
Gen Re's Houldsworth Avoids Prison in AIG Fraud Case [Bloomberg]
Posted by Phobos , Jun 16, 2009 2:31PM
No one likes a rat.
@Greg,
Getting better -- keep plugging away/good work.
-phobos.
Posted by guest , Jun 16, 2009 2:32PM
Good work if you can get it.
Posted by guest , Jun 16, 2009 2:45PM
greg you do improve, but you start from a very low base..
do something about the pics - there is no excuse for that clipart shit
Posted by guest , Jun 16, 2009 2:49PM
That has to hurt. $5000 could buy a lot of mystic tans.
-A. Mozillo
Posted by guest , Jun 16, 2009 2:52PM
Who says crime doesn't pay!!!!
Posted by guest , Jun 16, 2009 3:00PM
Mr. Anus,
Your prose induces waves of nausea to course through me. Thank you for being you.
Front Office
Posted by guest , Jun 16, 2009 3:01PM
@5
you're surprise is pitiful.
Posted by Novice , Jun 16, 2009 3:01PM
Angelo, you were always playing small ball.
-Ghost of Ken Lay
Posted by guest , Jun 16, 2009 6:57PM
How did AIG investors get defrauded out of $597mm?
AIG inflated its loan-loss reserves by $597mm. Yes that is a crime and AIG investors were certainly harmed because the company appeared healthier than it was, but there is no way you can put a
$597mm price tag on that.