Judge Rejects New Trial for Convicted Gen Re, AIG Executives

May 20, 2008

A federal judge has rejected requests to overturn the convictions of five former insurance company executives in a scheme to manipulate the financial statements of the world's largest insurance company.

The four former executives of General Re Corp. and a former executive of American International Group Inc. were convicted in February of conspiracy, securities fraud, mail fraud and making false statements to the Securities and Exchange Commission.

The defendants, Ronald Ferguson, Christopher P. Garand, Elizabeth Monrad, Robert Graham, and Christian Milton, are awaiting sentencing.

In denying their motions for acquittal and a new trial, U.S. District Judge Christopher Droney rejected arguments that the defendants should have been tried separately, that a witness was unreliable, and that AIG's misstatements about its loss reserves were not material to investors.