Buffett may not be called in trial

Billionaire Warren Buffett, on the prosecution witness list in the criminal trial of former General Reinsurance Corp Chief Executive Officer Ronald Ferguson, may not be called to testify, the government said in court filings on Monday.

Ferguson, 65, is scheduled to go on trial for fraud on January 7 in federal court in Hartford, Connecticut.

He wants jurors to see documents that he claims show Buffett, chairman of General Re parent Berkshire Hathaway Inc, approved reinsurance contracts that prosecutors say helped American International Group Inc inflate reserves by $500 million in 2000 and 2001, duping investors.

The government argued on Monday that Ferguson's lawyers shouldn't be permitted to bring up claims of Buffett's involvement in their opening remarks, because they amount to hearsay.

Charged with conspiracy, securities and mail fraud, and making false statements are former General Re Chief Financial Officer Elizabeth Monrad; Christopher Garand, a former senior vice-president; Robert Graham, former assistant general counsel; Christian Milton, the former head of reinsurance at AIG; and Ferguson. All have pleaded not guilty.

Denied knowledge

Buffett, 77, has denied knowledge of improper dealings. Stamford, Connecticut-based General Re sells coverage to insurance companies and is a wholly owed unit of Omaha, Nebraska-based Berkshire.

AIG, the world's largest insurer, last year agreed to pay $1.64 billion and reverse transactions including the one at the center of the upcoming trial, to settle probes of sales and accounting practices that led to the ouster of Maurice Greenberg, the New York-based company's former CEO.

Defense filings identify Greenberg as an unindicted co-conspirator. Greenberg has denied any wrongdoing.

Agencies

(China Daily 01/02/2008 page16)