Fifth executive jailed over sham AIG/Gen Re reinsurance deal
Former Gen Re executive Robert Graham has been jailed by a US district court for 366 days and fined $US100,000 ($137,000) following his conviction in the AIG/Gen Re reinsurance scandal.
Mr Graham, 61, who served as Gen Re Senior VP and assistant general counsel from 1986 until 2005, is the last of five insurance executives to be sentenced following conviction last year on conspiracy charges in a US district court in Connecticut.
Prosecutors proved a sham reinsurance deal sought to inflate AIG loss reserves by about $US500 million ($681 million).
Judge Christopher Droney said Mr Graham’s participation as Gen Re’s lawyer was “important to the sham transaction”.
Mr Graham is due to report to prison on June 3, but his lawyers say they will appeal.
Mr Graham, 61, who served as Gen Re Senior VP and assistant general counsel from 1986 until 2005, is the last of five insurance executives to be sentenced following conviction last year on conspiracy charges in a US district court in Connecticut.
Prosecutors proved a sham reinsurance deal sought to inflate AIG loss reserves by about $US500 million ($681 million).
Judge Christopher Droney said Mr Graham’s participation as Gen Re’s lawyer was “important to the sham transaction”.
Mr Graham is due to report to prison on June 3, but his lawyers say they will appeal.