Pleading guilty to a misdeamenor fraud charge isn't going to slow these ol' boys down one bit-In fact, they will stay employed....In other words, they were practicing business as usual..all the large houses and firms did exactly the same thing during the same timeframe....Spitzer actually is unwinding industry practices that were well known in the insurance sales channel.

Date:   8/5/2005 9:04:49 AM ( 19 y ago)

Four More Insurance Execs Plead Guilty

Fourteen insurance-industry executives have pleaded guilty to criminal charges since last fall. The most recent group includes managers from Marsh and Zurich.

Stephen Taub, CFO.com
August 05, 2005

New York State Attorney General Eliot Spitzer has racked up another four guilty pleas from insurance executives in his nearly two-year investigation into abuses in the insurance industry, according to published reports. Three of the executives are from Marsh & McLennan Cos. and the other is from Zurich American Insurance Co.

The defendants pleaded guilty to fraud and restraint-of-trade charges before New York Supreme Court Judge James Yates, reported Reuters. Since October, 14 insurance executives have entered guilty pleas to criminal charges, said the report.




James Spiegel, who had served as senior underwriter in the specialties excess casualty unit of Zurich, and Regina Hatton, a onetime senior vice president in the excess casualty division of Marsh Global Broking, each pleaded guilty to a felony fraud charge, according to Reuters. They face a prison sentence of between 16 months and four years, noted marketwatch.com, citing Spitzer spokesman Brad Maione.

Marsh insurance broker Nicole Michaels pleaded guilty to "combination in restraint of trade and competition," which the wire service noted is a misdemeanor.

Earlier in the week, former Marsh senior vice president and Global Broking coordinator Todd Murphy pleaded guilty to a misdemeanor fraud charge, added Reuters.

A Spitzer spokesman said more guilty pleas could be coming soon, but declined to comment further.




 

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