New York State Attorney General Eliot Spitzer has racked up another four guilty pleas from insurance executives in his nearly two-year investigation into abuses in the insurance industry, according to published reports. Three of the executives are from Marsh & McLennan Cos. and the other is from Zurich American Insurance Co.
The defendants pleaded guilty to fraud and restraint-of-trade charges before New York Supreme Court Judge James Yates, reported Reuters. Since October, 14 insurance executives have entered guilty pleas to criminal charges, said the report.
James Spiegel, who had served as senior underwriter in the specialties excess casualty unit of Zurich, and Regina Hatton, a onetime senior vice president in the excess casualty division of Marsh Global Broking, each pleaded guilty to a felony fraud charge, according to Reuters. They face a prison sentence of between 16 months and four years, noted marketwatch.com, citing Spitzer spokesman Brad Maione.
Marsh insurance broker Nicole Michaels pleaded guilty to “combination in restraint of trade and competition,” which the wire service noted is a misdemeanor.
Earlier in the week, former Marsh senior vice president and Global Broking coordinator Todd Murphy pleaded guilty to a misdemeanor fraud charge, added Reuters.
A Spitzer spokesman said more guilty pleas could be coming soon, but declined to comment further.