Trial Begins for Marsh & McLennan Executive in Bid-Rigging Scandal
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
William Gilman, a former managing director at Marsh & McLennan Cos., was the “architect and driving force” of a bid-rigging scandal at the world’s largest insurance brokerage, a New York prosecutor said as his trial began yesterday.
Mr. Gilman, 63, and Edward McNenney are the first of seven former Marsh & McLennan executives to be tried for fraud after a 2004 state probe of anticompetitive sales practices. An indictment accuses them of fixing prices to steer business to insurers that paid hidden fees. Mr. Gilman’s attorney says his client was actually at “war” with companies such as American International Group Inc.
“This case is about greedy, arrogant people,” Assistant Attorney General Nina Sas told New York Supreme Court Judge James Yates, who is hearing the case in Manhattan without a jury. “Instead of letting market forces run their course, they became the market forces, replacing clients’s interests with their own.”
