Devoted to the Insurance industry and all thing related

The second wealthiest person in the world, Warren E. Buffett was on a rather lengthy “list of 30 witnesses federal prosecutors filed today with the U.S. District Court, in New Haven, Conn. according to a National Underwriter article.  The fraud case involves General Reinsurance, which is a subsidiary of Buffett’s company Berkshire Hathaway.

This case is rather serious and involves quite a few past and current employees of Gen Re., American International Group (AIG) Merrill Lynch (MER), Bear Stearns & Co. (BSC) and Morgan Stanley.  According to the article the five defendants “are accused in a 13 count indictment of conspiracy, securities fraud, false statements to the Securities & Exchange Commission, wire fraud and mail fraud.” 

The details include “accusations that they engaged in a scheme involving bogus finite reinsurance arrangements designed to improve AIG’s financial picture to impress securities analysts and sustain its stock performance.”  

Let’s see how much press this case gets because of Buffett being called as a witness.