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Couple admits $450,000 from AIG, Deutsche went to horse farm

Couple admits $450,000 from AIG, Deutsche went to horse farm

NEW YORK (Reuters)—A former executive for American International Group Inc. and Deutsche Bank A.G. and her ex-husband have admitted they defrauded both companies to help support their horse farm, U.S. prosecutors said on Wednesday.

The former executive, Heidi Walker, and then-husband, Peter Pfabe, were criminally charged 18 months ago in a scheme in which they extracted more than $450,0000 from Deutsche Bank and AIG between November 2002 and March 2008 for "editing services for investment commentary" or "client investment management survey."

Federal prosecutors said that instead they were illegally extracting money for the couple's Field Pointe Farm in Salt Point, N.Y., under the guise of two sham companies. Ms. Walker was formerly a managing director of both AIG Global Investment Group and Deutsche Asset Management.

Ms. Walker, 47, and Mr. Pfabe, 52, pleaded guilty to one charge of conspiracy to commit mail fraud and wire fraud in U.S. District Court on Tuesday, according to a statement by the office of the Manhattan U.S. attorney on Wednesday.

Lawyers for Ms. Walker and Mr. Pfabe could not immediately be reached for comment.

Ms. Walker and Mr. Pfabe each face maximum sentences of five years in prison. Under their plea agreements with the government, they are also required to pay restitution to the victims of their offenses and to each forfeit $200,000, prosecutors said. Sentencing was scheduled for June 28.

A spokesman for AIG declined to comment and a spokesman for Deutsche Bank also declined to comment.

The case is U.S. vs Walker et al., U.S. District Court, Southern District of New York, No. 10-cr-00977.