Judge in Gen Re Case Asked to Consider Shareholder Losses When Sentencing Execs
On Thursday a federal judge heard from U.S. prosecutors, arguing that he should take into consideration shareholder losses of as much as $1.4 billion when sentencing five former executives convicted in a fraud scheme involving General Re Corp. and American International Group Inc.
During a hearing in Hartford, Conn., U.S. District Court Judge Christopher Droney requested more information from both the prosecution and defense on the extent of losses and possible restitution as a result of the 2000 sham reinsurance deal, a source familiar with the case confirmed.
Defense attorneys maintain that the reinsurance deal caused no losses to shareholders.
A federal jury in February convicted the five former Gen Re and AIG executives on charges of conspiracy to commit securities and mail fraud and making false statements to the U.S. Securities and Exchange Commission. They are: Ronald E. Ferguson, former Gen Re chief executive officer; Christopher P. Garand, former Gen Re senior vp in charge of U.S. finite underwriting; Robert Graham, former Gen Re senior vp and legal counsel; Elizabeth Monrad, former Gen Re chief financial officer; and Christian M. Milton, AIG’s former vp for reinsurance.
Published on September 26, 2008
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