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Marsh insurance broker pleads guilty in bid-rig scheme
Summary from the United Kingdom, from articles in English
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An executive at US insurance firm Marsh & McLennan has pleaded guilty to criminal charges in connection with an ongoing fraud and bid-rigging probe. (article 1)
New York Attorney General Elliot Spitzer said senior vice president Robert Stearns had pleaded guilty to scheming to defraud. (article 1)
The company added it would continue to co-operate in the case, adding it was "committed to resolving the company's legal issues and to serving our clients with the highest standards of transparency and ethics". (article 1)
Bid rigging According to a statement from Spitzer's office , the Marsh executive admitted he instructed insurance companies to submit non-competitive bids for insurance business between 2002 and 2004. (article 1)
Through the practice, Marsh was allowed to determine which insurers won business from clients, and so control the insurance market, Spitzer's office added. (article 1)
It also protected incumbent insurers when their business was up for renewal and helped Marsh to maximise its fees, a statement said. (article 1)
The company is also still being examined by US stock market regulator the Securities and Exchange Commission (SEC). (article 1)
Late last month the SEC asked for information about transactions involving holders of 5% or more of the firm's shares (article 1)
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Other summaries about this story:
Event tracking:
Story keywords
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Marsh, Stearns, Spitzer, Insurance, bids |
Source articles
- Marsh executive in guilty plea (BBC News, 01/06/2005, 294 words)
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blaster@cs.columbia.edu
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