Spitzer charges insurers for fraud

Oct. 14, 2004 at 1:44 PM
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NEW YORK, Oct. 14 (UPI) -- New York's attorney-general sued several major insurance companies on allegations of fraud and antitrust violations.

Eliot Spitzer charged Marsh & McLennan of receiving special payments that were "well above and beyond normal sales commissions," among other potential breaches, the attorney's office said. Spitzer has also accused AIG, The Hartford, Munich American Risk Partners and ACE as "participants in steering and bid rigging."

"The insurance industry needs to take a long, hard look at itself. If the practices identified in our suit are as widespread as they appear to be, then the industry's fundamental business model needs major corrective action and reform. There is simply no responsible argument for a system that rigs bids, stifles competition, and cheats customers," Spitzer said in a news release announcing the lawsuit.

Spitzer took the lead two years ago in taking action against corrupt business practices of major Wall Street investment banks that led to the demise of several key figures in the industry.

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