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]
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
No one likes a rat.
@Greg,
Getting better — keep plugging away/good work.
-phobos.
Good work if you can get it.
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
That has to hurt. $5000 could buy a lot of mystic tans.
-A. Mozillo
Who says crime doesn’t pay!!!!
Mr. Anus,
Your prose induces waves of nausea to course through me. Thank you for being you.
Front Office
@5
you’re surprise is pitiful.
Angelo, you were always playing small ball.
-Ghost of Ken Lay
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.