Second General Re executive pleads guilty

A second General Re Corp. executive recently pled guilty to conspiracy in regards to his involvement in a reinsurance transaction implemented for American International Group Inc. (AIG). Former senior VP Richard Napier, is charged with conspiring to misrepresent AIG’s reported loss reserves and faces a maximum penalty of five year imprisonment, a US$250,000 fine or twice the gross gain or loss (whichever is greater); full restitution; a special assessment; and, three years of supervised release. Napier, recently terminated from employment at General Re, is also barred from serving as an officer or director of a public company.
Napier, who agreed to cooperate with investigations, filed a plea agreement with a federal district court in Alexandria, Va. Under terms of the agreement Napier pled guilty to one count of conspiracy to file false financial reports, falsify books, records and accounts and mislead auditors.
Napier’s guilty plea follows former General Re Corp. executive John Houldsworth’s recent guilty plea on the same charge of conspiracy. Sentencing for both former executives is scheduled for Dec. 9.
Charges against the two men is a result of a recent civil complaint issued by the Securities and Exchange Commission.
Both Napier and Houldsworth agreed to the entry of a partial final judgment that resolves all issues of liability against them, but without admitting or denying the SEC’s allegations.