Ex-Gen Re exec gets probation for finite fraud

HARTFORD, Conn.—A former General Re Corp. executive who pleaded guilty to charges in a bogus 2001 finite reinsurance transaction between Gen Re and American International Group Inc. was sentenced Tuesday to two years' probation and fined $5,000.

John Houldsworth, former chief executive officer of Gen Re's Cologne Re Dublin unit, also was ordered to perform 400 hours of community service.

Mr. Houldsworth pleaded guilty in 2005 to a charge of conspiracy and cooperated in the government's case against other former Gen Re and AIG officials, who faced charges that they created a sham loss-portfolio transfer designed to help AIG manipulate its financial statements.

Those executives, including former Gen Re CEO Ronald E. Ferguson, were convicted last year of charges of conspiracy, securities and mail fraud, and making false statements to the Securities and Exchange Commission, and have received various jail terms and fines from Judge Christopher Droney of the U.S. District Court in Hartford, Conn.

Another former Gen Re executive, Senior Vp Richard Napier, also pleaded guilty to conspiracy but has not yet been sentenced.