NEW YORK--Two former Marsh Inc. executives charged in connection with New York's bid-rigging investigation at the broker have been found guilty of violating the state's antitrust law but were acquitted of all other charges, including fraud and larceny.

New York County Supreme Court Judge James A. Yates Friday morning found the executives--William Gilman, a managing director and former executive marketing director in Marsh Inc.'s Global Broking unit; and Edward J. McNenney, a former managing director and global placement director--guilty of restraint of trade under the Donnelly Act, which is New York's antitrust law, in rigging bids for coverage.

The conviction does not require jail time, though Judge Yates could impose a sentence of up to four years. A sentencing hearing will be held in April.

Prosecutors argued that the duo misled the broker's excess casualty clients by steering business to selected insurers and preventing a competitive bidding process.

But lawyers for the defendants had argued at trial that Messrs. Gilman and McNenney solely acted in the interest of clients, fighting to pry away AIG's grip on the market and to secure the best insurance coverage possible.

Mr. Gilman's attorney, Robert Cleary of Proskauer Rose L.L.P in New York, welcomed the judge's decision to acquit his client on most of the charges.

"We are very pleased with the verdict for my client. The judge saw the undeniable truth from the evidence that was presented. Witness after witness testified that (Mr. Gilman) was relentless in trying to get the best possible deal for his clients, so it is little wonder why the judge acquitted him on fraud," the attorney said.

Noting that he plans to appeal the antitrust conviction, Mr. Cleary said: "We're puzzled about the conviction on the antitrust charges. It's difficult to say how he could have reached the conclusion that (Mr. Gilman) engaged in antitrust conduct. The evidence is inconsistent with the verdict."

Mr. McNenney's lawyer, Stephen Neal of Cooley Godward Kronish L.L.P. in Palo Alto, Calif., could not be immediately reached for comment.

In a statement, a spokesman for the New York attorney general's office said: "We are gratified that the court found the defendants guilty of felony bid rigging. Bid rigging is a serious offense which deprives customers of the benefits of a competitive marketplace, and this office will continue to prosecute it vigorously."

Messrs. Gilman and McNenney, along with a group of other former Marsh executives, were indicted in 2005 on various counts of bid rigging and fraud by then-New York Attorney General Eliot Spitzer and former State Insurance Superintendent Howard Mills.

That indictment accused the executives of colluding with employees at various insurers--including AIG, ACE USA, Liberty International Insurance Co. and Zurich American Insurance Co.--to rig the market for excess casualty insurance between November 1998 and September 2004.

The defendants and others involved in the alleged scheme would predetermine which carriers won business, set "targets" for the predetermined winner to submit as a bid, and obtain "losing bids" from employees at the accomplice companies, the indictment charged.

Five other individuals also indicted in the case are now awaiting trial.

Marsh itself has not faced any criminal sanctions over the scandal, and in January 2005 paid $850 million restitution for policyholders to end regulators' bid-rigging and fraud probes.