Reply #56: Scammers Inc: Former Gen Re CEO gets SEC 'Wells Notice,' Berkshire says [View All]

[UpInArms]

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38632.4709153125-845222326&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Berkshire Hathaway (BRKA) (BRKB) said on Friday that Ronald Ferguson, former chief executive of its General Re subsidiary, got a "Wells Notice" from the Securities and Exchange Commission as part of the agency's investigation into so-called finite risk reinsurance. A "Wells Notice" warns that SEC staff is considering recommending civil action and gives the recipient a chance to respond before the agency moves forward with a formal lawsuit. Ferguson stepped down as General Re CEO on Oct. 1, 2001 but stayed on as a consultant until May 20, 2005, when Berkshire ended the relationship, Berkshire said in a statement on its Web site. Ferguson helped arrange a finite reinsurance transaction between General Re and American International Group (AIG) that helped AIG artificially bolster its results, according to a civil lawsuit filed earlier this year by New York Attorney General Eliot Spitzer.