February 24, 2005 by Canadian Underwriter
New York Attorney General Eliot Spitzer has announced another guilty plea on the part of a Marsh executive to charges of fraud and bid-rigging of insurance contracts.
The woman, who is a former managing director at Marsh, pleaded guilty in New York County Supreme Court to “scheme to defraud in the first degree”, which is a class-E felony and carries a maximum state prison sentence of up to four years.
In a statement, Spitzer says, “the former Marsh executive admitted that during a period from 2001 to 2004, she instructed insurance carriers to submit non-competitive bids for insurance business, and that such bids were conveyed to Marsh clients under false and fraudulent pretenses. These non-competitive bids allowed Marsh to control the market, protect incumbent insurance carriers when their business was up for renewal, and maximize profits.”
This makes 10 insurance industry employees who have now pleaded guilty in the course of Spitzer’s investigation into insurance industry practices, including former executives of Marsh, AIG, ACE and Zurich.