Three more March & McLennan Companies Inc. and American International Group Inc. executives have pleaded guilty in a trial on charges on bid-rigging and price-fixing in the largest scandal in the insurance industry triggered by New York Attorney General Eliot Spitzer’s probe. So far the list of those who pleaded guilty in the trial has reached nine people.
The new names include Joshua Bewlay, 39, former managing director at Marsh; John Mohs, 36, a vice president in a unit of AIG; and Carlos Coello, 33, an AIG underwriter.
Bewlay admitted he engaged in the practice of using back-up, or B quotes, to direct business to insurers who were not the best option for the client.
"I personally solicited losing quotes on a number of occasions," Bewlay said in his plea statement. "Unknown to Marsh’s clients, I, along with others at Marsh and others at various insurance companies who participated in this conduct, shared the common purpose of insuring that a particular carrier bound the client’s excess casualty insurance policy; `B quotes’ were solicited and obtained related to and as part of this common scheme, and, the scheme caused more than one Marsh client to obtain more expensive and/or less favorable insurance coverage."
The new testimony refutes the Marsh’s claim that the abuses were not common in the company, and were perpetrated by a few employees who violated the company’s policies.
The scandal has led Marsh, the company primarily targeted by Spitzer, to pay $800 million in settlement. The company has hoped that the settlement will help to hush down the scandal, but the trial is likely to continue as more guilty pleas come in.