Former Gen Re finite exec gets one-year sentence
Reprints
HARTFORD, Conn.Former General Re Corp. executive Robert Graham was sentenced to one year and one day in prison and fined $100,000 for his role in a bogus finite reinsurance transaction between Gen Re and American International Group Inc.
Click here to see full trial coverage.
The sentence was handed down Thursday by Judge Christopher Droney of the U.S. District Court in Hartford, Conn.
Judge Droney again rejected federal sentencing guidelines in sentencing Mr. Graham, who is the last of five former Gen Re and AIG officials to be sentenced since they were convicted in February 2008.
Mr. Graham, 58, was Gen Re's senior vp and assistant general counsel from 1986 to 2005. He was ordered to report to prison on June 3.
His lawyer, Alan Vinegrad, New York-based partner with Covington & Burling L.L.P., said he would ask the court to allow Mr. Graham to remain free pending appeal.
Mr. Graham and the other defendants in the case were convicted on charges of conspiracy, securities fraud and making false statements to the Securities and Exchange Commission. Prosecutors convinced the jury that the individuals had created a sham loss-portfolio transfer designed to help AIG manipulate its financial statements.
Judge Droney in November 2008 determined that AIG shareholders lost more than $500 million because of the bogus deala figure that, under recommended sentencing guidelines, could have resulted in life sentences.
Last December, Judge Droney sentenced former Gen Re Chief Executive Officer Ronald E. Ferguson to two years in prison and a $200,000 fine for his role in the deal. Since then, the following sentences have been handed down:
- Christian M. Milton, a former AIG vp of reinsurance, four years in prison and a $200,000 fine.
- Christopher Garand, Gen Re's senior vp in charge of U.S. finite underwriting, one year and one day in prison and a $150,000 fine.
- Elizabeth Monrad, Gen Re's former chief financial officer, 18 months in prison and a $250,000 fine.
