Feds Object to Involving Buffett

But federal prosecutors say Buffett did not approve the deal and are objecting to defense attempts to argue that he was involved. Buffett, one of the country's wealthiest and most admired business leaders, also denies the claim.

Four former executives of Berkshire Hathaway's General Re Corp. and a former executive of American International Group Inc. are charged with participating in a scheme to manipulate AIG's financial statements. Their trial starts Jan. 7 in Hartford.

Prosecutors have listed Buffett as a potential witness. Buffett, who leads Berkshire Hathaway, an investment company based in Omaha, Neb., has not been charged with any wrongdoing.

One of those charged, Ronald Ferguson, has notified prosecutors that he intends to present an exhibit during opening arguments listing Buffett among those involved in the deal that led to the charges, prosecutors said in court papers.

Prosecutors said in court papers filed Thursday that Ferguson and the other defendants should be prevented from claiming Buffett approved the deal "or provided any authorization in connection with it in light of the fact that it is patently untrue and the evidence will show no such thing."

Buffett said in a 2005 statement that he "was not briefed on how the transactions were to be structured or on any improper use or purpose of the transactions."

Buffett's attorney, Ronald Olson, said in a recent statement that Buffett "denies that he passed judgment in any way on the challenged AIG/Gen Re transaction in November 2000 or at any other time."

A telephone message left Friday for Ferguson's attorney was not returned.

At issue are two reinsurance transactions between AIG and Stamford-based General Re that were initiated by an AIG senior executive to quell criticism by analysts of a reduction in AIG's loss reserves in the third quarter of 2000, prosecutors said. The indictment alleges that the aim was to make it appear as if AIG increased its loss reserves, pacifying the analysts and investors and artificially boosting the company's stock price.