Before there was outrage about AIG bonuses after the government bailout, there was the massive fraud that misled investors and cost shareholders of American International Group Inc. millions.
And one-by-one, the people behind it are facing judges. The fourth person found guilty will serve a year and a day in prison for his role in an accounting scandal that authorities say cost shareholders of American International Group Inc. more than $500 million.
Robert Graham, of Westport, a former executive of Connecticut-based General Re Corp., could have gotten life in prison.
Federal Judge Christopher Droney ruled that Graham must also serve two years of supervised release and pay a $100,000 fine. He faced up to life in prison and a fine of up to $46 million.
Federal prosecutors said AIG paid Gen Re in a secret deal to take out reinsurance policies with AIG in 2000 and 2001. (That means insurance on insurance) The scheme, they said, propped up AIG's stock prices and inflated reserves.
The other four defendants got sentences of one to four years.
He was the senior vice president and assistant general counsel at Stamford-based General Re from 1986 to 2005.
- Elizabeth Monrad, 54, of New Canaan, will serve 18 months in prison.
- Ronald Ferguson, Gen Re’s chief executive officer from approximately 1987 through September 2001, was sentenced to two years in prison and ordered to pay $200,000.
- Christian Milton, AIG’s vice president of reinsurance, was sentenced to four years in prison and fined $200,000.
- Christopher Garand, Gen Re’s senior vice president and the head and chief underwriter of Gen Re’s finite reinsurance operations in the U.S., was sentenced to 12 months and one day of imprisonment and fined $150,000.
