Two Zurich execs plead guilty in Spitzer insurance probe

[JURIST] Two senior insurance underwriters with Zurich Financial Services, the third-largest commercial insurer in the US, pleaded guilty Tuesday night to charges connected to NY Attorney General Eliot Spitzer's ongoing insurance bid-rigging investigation. Also Tuesday, Zurich reported receiving a subpoena from the SEC and Spitzer. The executives pleaded guilty to following instructions from brokers to submit losing bids, allowing contracts to go to designated parties. Both face up to a year in prison on the charges under NY's Donnelly Act. Spitzer's office has a press release on the plea deal. JURIST's Paper Chase has ongoing coverage of Spitzer's investigation into the insurance industry. The Financial Times has more.

9:30 AM ET - The Hartford Courant reports that investigations into the insurance industry are expected to widen following testimony by state officials and regulators before Congress Tuesday.

 

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