2nd Circuit Overturns Convictions of AIG, Gen Re Executives, Orders New Trial

NEW YORK - A federal appeals court has overturned the conviction of five former executives accused of engineering an allegedly fraudulent reinsurance transaction between American International Group and General Reinsurance Corp., ruling that the trial judge abused his discretion in admitting certain evidence and issuing an erroneous jury instruction. United States v. Ferguson, et al., Nos. 08-6211-cr(L), 09-0121-cr(Con), 09-0313-cr(XAP), 09-0507-cr(Con), 09-0881-cr(XAP), 09-1072-cr(Con), 09-1120-cr(XAP), 09-1677-cr(Con), 09-1723-cr(XAP), 09-2127-cr(Con) and 09-2141-cr(XAP) (2nd Cir.).

The 2nd Circuit U.S. Court of Appeals ruled Aug. 1 that a new trial is warranted because Judge Christopher F. Droney of the U.S. District Court for the District of …