PLEADING

A former managing director at Marsh & McLennan Cos. became the third executive at the world’s largest insurance brokerage to plead guilty to New York Attorney General Eliot Spitzer’s charges of rigging insurance bids. Kathryn Winter pleaded yester day before New York State Supreme Court Judge James Yates, joining ex-managing directors Robert Stearns and Josh Bewlay in admitting to criminal charges stemming from Mr. Spitzer’s investigation of kickbacks and collusion in the insurance industry, the attorney general said in a statement. Ms. Winter, 50, pleaded guilty to a felony count of scheme to defraud, a charge that could bring up to four years in prison. Her sentence could be reduced as a result of her cooperation. Mr. Spitzer has now charged 10 former or current executives of Marsh, American International Group Inc., Ace Ltd., and Zurich Financial Services AG since he sued New York-based Marsh in October. He obtained an $850 million settlement from the brokerage last month and plans to use the pleas to build cases against more senior executives.

– Bloomberg News

BOEING NEWS

A U.S. government agency recommended the Air Force hold a new competition for a portion of a Boeing Co. contract worth as much as $4 billion to upgrade avionics on C-130 transports because of a conflict of interest in the original award. Lockheed Martin Corp., L-3 Communications Holdings, Inc. and BAE Systems Plc protested the award in October after former Pentagon official Darleen Druyun told prosecutors she improperly favored Boeing on another contract.

– Bloomberg News