A former executive of Berkshire Hathaway’s General Re has been sentenced to two years of probation for his role in a financial scandal that cost shareholders of insurer American International Group more than $500 million. Richard Napier was also fined $10,000 by a federal judge in Hartford and ordered to perform 400 hours of community service over the two years. Napier, who pleaded guilty to securities fraud conspiracy in 2005, apologized in court, saying the words “I’m sorry” didn’t begin to reflect his remorse for his involvement in the scheme, reported Associated Press. Assistant U.S. Attorney Raymond E. Patricco Jr. credited the former executive with helping to convict five top executives. Patricco said Napier provided prosecutors with “a unique, inside perspective on this case” and met with them 25 to 30 days, combing through hundreds of e-mails and painstakingly explaining the complicated world of reinsurance. Patricco asked the U.S. District Judge Christopher F. Droney for a lighter sentence for Napier. Prosecutors said the transactions were initiated by an AIG senior executive to quell criticism by analysts of a reduction in AIG’s loss reserves in the third quarter of 2000. The aim, according to prosecutors, was to make it appear as if AIG increased its loss reserves by about $500 million in 2000 and 2001, pacifying the analysts and investors and artificially boosting the company’s stock price.
Former Gen Re VP Sentenced to Two Years’ Probation
Richard Napier was also fined $10,000 by a federal judge in Hartford and ordered to perform 400 hours of community service over the two years.
September 16, 2009