Loss estimate points to life in jail for convicted Gen Re/AIG execs
Five former Gen Re and AIG executives convicted of fraud have argued against advisory rulings that could see them spend life in prison.
Last month in a US district court Judge Christopher Droney sided with government estimates in ruling that a fake reinsurance deal that inflated AIG loss reserves cost shareholders between $US544-597 million ($829-910 million).
The total financial loss associated with fraud is critical to the length of jail time white-collar criminals serve in the US, according to federal sentencing guidelines.
The magnitude of the Gen Re/AIG loss calls for life in prison.
Judge Droney earlier rejected both the Probation Department’s estimate that put losses at $US5 million ($7.6 million) and also tossed out the defendants’ assertion that no losses were realised.
Lawyers for the defendants have argued against the guidelines in court papers filed this month, stating that unlike other corporate crimes, executives were not personally enriched by the deal.
Judges have the discretion to downgrade guideline sentences while prosecutors have pressed only for “substantial” jail terms.
The five defendants were found guilty in March. They are former Gen Re CEO Ronald Ferguson, former Gen Re Senior VP Christopher Garand, former Gen Re Senior Counsel and VP Robert Graham, former Gen Re CFO Elizabeth Monrad and former AIG Reinsurance VP Christian Milton.
Mr Ferguson is the first executive due to be sentenced, in mid-December.
Last month in a US district court Judge Christopher Droney sided with government estimates in ruling that a fake reinsurance deal that inflated AIG loss reserves cost shareholders between $US544-597 million ($829-910 million).
The total financial loss associated with fraud is critical to the length of jail time white-collar criminals serve in the US, according to federal sentencing guidelines.
The magnitude of the Gen Re/AIG loss calls for life in prison.
Judge Droney earlier rejected both the Probation Department’s estimate that put losses at $US5 million ($7.6 million) and also tossed out the defendants’ assertion that no losses were realised.
Lawyers for the defendants have argued against the guidelines in court papers filed this month, stating that unlike other corporate crimes, executives were not personally enriched by the deal.
Judges have the discretion to downgrade guideline sentences while prosecutors have pressed only for “substantial” jail terms.
The five defendants were found guilty in March. They are former Gen Re CEO Ronald Ferguson, former Gen Re Senior VP Christopher Garand, former Gen Re Senior Counsel and VP Robert Graham, former Gen Re CFO Elizabeth Monrad and former AIG Reinsurance VP Christian Milton.
Mr Ferguson is the first executive due to be sentenced, in mid-December.