SEC Reportedly Mulling Fraud Action Against Gen Re Exec
May 7, 2005
NEW YORK -- The Securities and Exchange Commission is considering filing a civil securities-fraud complaint against Rick Napier, an executive at Berkshire Hathaway Inc.'s (BRKA) General Re unit, for helping American International Group Inc. (AIG) improperly account for a reinsurance transaction, according to a person familiar with the SEC action.
Berkshire disclosed Friday the SEC served its so-called Wells notice to a senior vice-president of General Re on Monday and that the regulator could " bring a civil injunctive action and seek penalties against the individual, alleging that the individual violated or aided and abetted" securities laws. Berkshire, which didn't name the executive, couldn't be reached over the weekend.