Robert Graham gets year and a day sentence for AIG fraud

Former General Re executive Robert Graham has been sentenced to a year and a day in jail and fined $100,000 for his role in a fraudulent scheme to manipulate AIG’s financial statements, Dow Jones reports.

Graham is the last for the four former General Re officials found guilty in February 2008. Prosecutors accused the executives of inflating AIG's reserves by $500m in 2000 and 2001 through fraudulent reinsurance deals that made AIG, Gen Re's largest client, look stronger than it was.

The other three officials received jail terms ranging from 18 months to four years. They included former chief executive Ronald Ferguson and ex-chief financial officer Elizabeth Monrad. A fifth defendant, former AIG official Christian Milton, got the same year-and-a-day sentence as Graham.

Gen Re is owned by Warren Buffett's Berkshire Hathaway.