US financial watchdog the Securities and Exchange Commission has charged reinsurer General Re Corporation for its involvement in separate schemes by American International Group and Prudential Financial Inc to manipulate and falsify their reported financial results. General Re agreed to pay $12.2m (£7.6m) to settle the charges. In addition, in a non-prosecution agreement with the Department of Justice in connection with a related criminal investigation of Gen Re's transactions with AIG, Gen Re agreed to pay $19.5m to the US Postal Inspection Service Consumer Fraud Fund. The company also agreed to pay $60.5m through a civil class action settlement to AIG's 'injured' shareholders. Gen Re previously forfeited to the US government about $5m in fees it earned for its participation in the scheme with AIG. The SEC previously charged AIG with securities fraud and improper accounting, and the company settled by paying more than $800m among other remedies. According to the SEC's complaint against Gen Re, a foreign subsidiary entered into two sham 'reinsurance' transactions with AIG to reverse the declining reserve trend and falsely report additions to both loss reserves and premiums written. It is also alleged Gen Re separately entered into sham reinsurance contracts with Prudential's property and casualty division from 1997 to 2002.