Buffett May Be Defense Witness In AIG Fraud Case

Buffett May Be Defense Witness In AIG Fraud Case

Billionaire investor Warren Buffett, slated to be called as a prosecution witness in the criminal fraud trial against five executives for allegedly helping American International Group inflate its reserves, may also be called as a defense witness by at least one of the defendants, CNBC has learned.

The executive, Elizabeth Monrad, was the former chief financial officer of General Re, a subsidiary of Buffett's Berkshire Hathaway, which engaged in the transaction that prosecutors say illegally transferred $500 million in reserves to AIG.

The transaction has attracted widespread regulatory attention, forcing AIG to restate earnings, pay $1.6 billion in fines and penalities, and causing the insurance giant to oust its former CEO Maurice "Hank" Greenberg, who was involved in the deal. Greenberg says he's done nothing wrong.

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