View this article online: https://www.insurancejournal.com/news/national/2009/05/01/100136.htm
A former executive at General Re Corp. has been sentenced to a year in prison for his role in a scheme to artificially inflate the stock price of American International Group.
Robert D. Graham, 61, was sentenced yesterday by a federal judge in Hartford, Connecticut. Graham will also receive two years of supervised release and pay a $100,000 fine.
Graham was the former senior vice president and assistant general counsel for Gen Re who — along with three other Gen Re execs and another at AIG — were convicted last year of fraud and other charges for a 2000-era book-cooking scheme that artificially inflated AIG’s loss reserves in an effort to improve the company’s stock price.
Last year, the court found that AIG’s shareholders lost between $544 million and $597 million as a consequence of the scheme.
He is the final defendant to be sentenced in connection with the case. Christian M. Milton, the former AIG vice president of reinsurance, received a four-year sentence. Ronald E. Ferguson, Gen Re’s former CEO received two years. Elizabeth A. Monrad, Gen Re’s former chief financial officer, received and 18-months sentence. Christopher P. Garand, who was Gen Re’s senior vice president and chief underwriter of Gen Re’s finite reinsurance, received a one-year sentence.
Graham’s co-defendants also paid fines of between $150,000 and $250,000 each.