Former General Re chief likely faces SEC enforcement lawsuit over Berkshire Hathaway subsidiary's transactions with American International Group WORLD-HERALD10-7 Ronald E. Ferguson, former head of Berkshire Hathaway Inc.'s largest insurance division, may be sued by the U.S. Securities and Exchange Commission, Berkshire said today. The Omaha-based investment company headed by Warren Buffett said attorneys representing Ferguson reported that he had received notice from the SEC related to its investigation of nontraditional insurance products.A person who receives such a notice can respond to the commission's staff before it recommends whether the commission should file a civil action. The SEC could ask a court to bar Ferguson from serving as an officer or director of a publicly held company and to impose other civil penalties.Ferguson was chief executive of Berkshire's General Reinsurance division until Oct. 1, 2001. He provided consulting services to the company until May 20, 2005, when General Re ended the consulting agreement after Ferguson refused to answer questions posed by investigators from the SEC and the U.S. Justice Department.Authorities are investigating alleged accounting irregularities involving transactions between General Re and American International Group Inc. The SEC alleged that General RE's sales of finite risk re-insurance products were in reality disguised loans whose purpose was to inflate Aig's earnings.