3rd General Re official faces a fraud complaint

By Timothy L. O'Brien The New York Times
MAY 12, 2005

The U.S. Securities and Exchange Commission has notified a third executive of General Re that he faces a civil fraud complaint as part of an investigation of financial manipulation in the insurance industry, according to a person briefed on the matter. The executive, John Houldsworth, was the head of General Re's office in Dublin. Houldsworth has been in the middle of several questionable transactions that have drawn the attention of regulators in the United States and other countries. While he still holds a senior position in Dublin, he no longer manages the office.

Separately, the pension fund TIAA-CREF said on Tuesday that its chief financial officer, Elizabeth Monrad, had requested and been granted an unpaid leave of absence to respond to a regulatory action against her. The SEC notified Monrad last Thursday that it planned to file a civil fraud complaint against her in connection with a questionable transaction between her former employer, General Re, and American International Group, according to a person briefed on the matter. Both General Re and AIG are targets of investigations into fraudulent insurance practices. Both are cooperating with the inquiries.

Last week, the SEC also notified a current General Re executive, Richard Napier, that it planned to file a civil fraud complaint against him in connection with the AIG transaction, according to two other people briefed on the matter.