SEC May Charge Pension Fund CFO

Pension-fund giant TIAA-CREF on Tuesday said its chief financial officer, Elizabeth Monrad, is taking an unpaid leave of absence after receiving word from regulators that she may face charges stemming from her previous work at one of Berkshire Hathaway Inc.’s insurance companies.

Monrad, who asked for the leave, received a so-called Wells notice from the Securities and Exchange Commission, a sign that she is likely to face charges of violating securities law.

Monrad couldn’t immediately be reached for comment.

Monrad was the CFO of General Reinsurance Corp., which is being investigated for a possibly improper transaction with American International Group Inc.

Monrad joined TIAA-CREF, best known for handling pensions and insurance for teachers, as executive vice president and CFO in June 2003.

Before that, regulators believe, she and a current General Re executive, Richard Napier, attended a 2000 meeting with AIG executives that led to the reinsurance transaction being investigated by the SEC. Regulators say the transaction, dealing with what’s known as finite-risk reinsurance, was accounted for improperly.

On Friday, Berkshire announced that a current, unnamed executive had also received a Wells notice.

Berkshire has said that its executives have cooperated fully with investigators.

TIAA-CREF is known for pushing its portfolio companies to improve their governance and accounting practices.