The former executives of Marsh & McLennan -- the nation's largest brokerage, headquartered in New York -- were accused of colluding with executives at major insurance companies to arrange noncompetitive bids. These bids then were given to Marsh & McLennan clients "under false pretenses," according to Spitzer's statement.

"These are very senior executives within the Marsh hierarchy," Spitzer said. "Not only was it wrong, it was harmful to the economy. ... There is simply no responsible argument in favor of rigging bids, stifling competition and cheating."

The defendants were arraigned Thursday in state Supreme Court. All entered innocent pleas and were released pending further court appearances, according to Spitzer and state Insurance Superintendent Howard Mills.

Five former executives were indicted on charges of first-degree scheming to defraud, restraint of trade and competition, and grand larceny -- all felonies. They were William Gilman, was executive marketing director; Joseph Peiser, head of global broking excess casualty and managing director; Edward J. McNenney, global placement director and managing director; Thomas T. Green Jr., a senior vice president, and Greg J. Doherty, former local broking coordinator and team leader and a senior vice president.

Three others were indicted on charges of scheming to defraud, restraint of trade and grand larceny: Kathleen M. Drake, who was local broking coordinator team leader and managing director; William L. McBurnie, coverage and carrier specialist and senior vice president, and Edward J. Keane Jr., assistant vice president.

If convicted, Gilman, Peiser, McNenney, Green and Doherty face a maximum sentence of 25 years in state prison. The other defendants face a maximum of 15 years in prison.

Peiser's attorney, Jerry Bernstein of New York, said his client will fight the charges at trial.

"Joe Peiser was a loyal Marsh employee and did not do anything wrong," Bernstein said. "He did not steal any money or engage in a scheme to defraud or violate any of the statutes."

Other attorneys could not immediately be reached for comment.

Spitzer has closed most of his earlier cases with settlements and guilty pleas, rather than at trial.

Spitzer has alleged that bid-rigging by insurance companies -- along with special commissions aimed at steering customers to insurers in exchange for bonuses -- has been widespread in the industry. That can keep customers from receiving the best deal.

In January, Marsh & McLennan agreed to pay $850 million in restitution to end Spitzer's investigation into bid rigging and price fixing. The settlement became a model for other insurance company settlements.

Marsh & McLennan as a corporation faces no criminal sanctions, Spitzer said.

In a statement about Thursday's action, Michael G. Cherkasky, president and chief executive officer of Marsh & McLennan, said "this indictment is about the past." He added that Marsh & McLennan "today is focused on the future and is committed to excellence and the highest standards of professionalism and service."

The indictments handed down Thursday allege bid rigging from November 1998 to September 2004.

Spitzer said the defendants colluded with executives at American International Group, Zurich American Insurance Company, ACE USA, Liberty International Insurance Co. and other unnamed companies.

Agreements have not been reached with ACE, AIG, Zurich or Liberty, Spitzer said.

-- Michael Gormley (Associated Press Writer); Associated Press Writer Sam Maull contributed to this story for New York City.