Wednesday February 16, 3:07 am ET By Samuel Maull, Associated Press Writer
Former Marsh, AIG Execs Plead Guilty in Insurance-Industry Probe of Bid-Rigging and Price-Fixing NEW YORK (AP) -- A former managing director at March & McLennan Companies Inc., and two employees of American International Group Inc., employees pleaded guilty to criminal charges in a state probe of bid-rigging and price-fixing in the insurance industry.
Joshua Bewlay, 39, of Tuxedo Park, N.Y., who worked for Marsh; John Mohs, 36, of Manhattan, a vice president in a unit of AIG, and Carlos Coello, 33, of Teaneck, N.J., an AIG underwriter, entered their pleas Tuesday in Manhattan's state Supreme Court. All three defendants admitted to participating in a scheme that allowed Marsh, the nation's largest insurance broker, to protect incumbent insurance carriers when their business was up for renewal. Bewlay, fired last week, and Mohs, currently on leave, pleaded guilty to one felony count each of scheme to defraud and face up to four years in prison if convicted. Coello, also on leave, pleaded guilty to a misdemeanor count of scheme to defraud, punishable by up to one year in jail. New York Attorney General Eliot Spitzer said the defendants are expected to testify in future cases, as are the six other insurance industry employees who have already entered guilty pleas. Bewlay told the court the practice of obtaining losing quotes -- known as "B quotes" -- to steer business was widespread in the industry and in the company, not just the effort of a few employees.