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‘November, 2004’

Cooking the Insurance Books: A Decade of Lax Regulation Lays Groundwork for Scandal

Cooking the Insurance Books: A Decade of Lax Regulation Lays Groundwork for Scandal

CorpWatch, Nov 17, 2004

In October, New York Attorney General Eliot Spitzer filed suit against the world’s largest insurance broker, Marsh, accusing it of rigging bids and receiving kickbacks in order to defraud clients such as other corporations, city governments, school districts and individuals of billions of dollars through inflated premiums.

“Greedy trial lawyers were the usual excuse for premium increases. Now we know that greedy corporations also have a starring role,” Spitzer said, accusing several insurance companies as co-conspirators in making phony or inflated bids and paying kickbacks to the brokerage to get business.

Cooking the Insurance Books

Cooking the Insurance Books

Nov 2004

Insurance giant AIG has used offshore structures in Barbados and Bermuda to circumvent or violate U. S. state laws regarding reinsurance and to help at least one crooked client evade taxes.

In the late 90s, four state insurance departments were aware that AIG was secretly hiding its debts offshore but, despite substantial evidence of wrongdoing, no sanctions were ordered.