AIG’s General Re reinsurance scam sees second exec jailed
Former AIG executive Christian Milton was sentenced to four years in prison and fined £200,000 for his role in a reinsurance deal that prosecutors said misled AIG investors, Reuters reports.
Judge Christopher Droney of the US District Court in Hartford, Connecticut. could have sentenced Milton to as much as 210 years in prison.
Milton, a former AIG vice president of reinsurance, and four former executives at Berkshire Hathaway’s General Re Corp business were found guilty last year of conspiracy and fraud.
The case covered a finite reinsurance transaction sold by General Re that prosecutors said allowed AIG to improperly boost its loss reserves by $500m in 2000 and 2001.
Milton is currently scheduled to report to federal prison on March 25, according to a court spokesman, Thomas Carson.
Ronald Ferguson, General Re's former chief executive, was sentenced to two years in prison last month in the same case.
Milton currently works for CV Starr, a New York-based insurance and investment firm run by Maurice "Hank" Greenberg, a former AIG CEO.
Elizabeth Monrad, General Re's former chief financial officer, is scheduled to be sentenced on 12 February, and Christopher Garand, a former General Re senior vice president and head of finite reinsurance operations in the US, is expected to be sentenced on 4 March.
No date has yet been set for sentencing of Robert Graham, Gen Re's former general counsel.
Greenberg left AIG in 2005 after Eliot Spitzer, then the New York Attorney General, filed a lawsuit against him and the company, alleging manipulation of financial results, including the General Re case.
AIG paid $1.6 billion to settle the charges in 2006, while Greenberg has denied any wrongdoing and continues to fight civil charges.
