The government's new witness list in the fraud case against former insurance executives was disclosed, and Berkshire Hathaway (BRK-A) Chairman Warren Buffett is one of those on the list.
A transaction between General Reinsurance Corp. and American International Group Inc. (AIG), considered a fraud, is the basis of the case against the five former insurance executives. Specific charges in the case are for securites fraud, false statements and mail fraud.
According to government statements, Buffett didn't know the nature of the transaction because former CEO of Gen Re, Ronald Ferguson, didn't tell the truth about the particulars of the arrangement.
Along with Ferguson, other Gen Re executives being tried will be Robert Graham, Christopher Garand and Elizabeth A. Monrad. Christian Milton, who headed the reinsurance unit of AIG, is also being prosecuted.
Already pleading guilty in the scheme are John Houldsworth, CEO of Gen Re subsidiary Cologne Re Dublin and Richard Napier, a former senior vice president at Gen Re. They've been the key witnesses in building the case for the government.
The trial is scheduled to begin on January 7, 2008, and jury selection beings today (Dec. 3).
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