With the economic downtown, the frauds come to light. Fortune has chronicled four alleged frauds and the ringleaders. What is most interesting is the people behind the schemes, and how they pulled if off for so long. Audacity?
Madoff - Trader (here & here)
Dreier - Lawyer (here)
Stanford - Money manager (here & here)
Salander - Art dealer (here)
None of these people were in the insurance business. Recently and within the actual insurance business itself (ie AIG’s problems were/are, we are told, not in the insurance entities), the amount of fraud by insurance practitioners is not anywhere near the same scale. That doesn't mean the insurance business has been without problems. A few years ago we had the Near North/Segal scandal (see here & here).
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