Third exec sentenced over AIG/Gen Re reinsurance scam
Former Gen Re Senior VP Christopher Garand has been jailed by a US district court for 366 days and fined $US150,000 ($232,818) following his conviction in the AIG/Gen Re reinsurance scam.
Mr Garand, 61, who was in the role from 1994 until 2005, is the third insurance executive to be jailed after former Gen Re CEO Ronald Ferguson and former AIG reinsurance VP Christian Milton were sentenced earlier this year.
Five former Gen Re and AIG executives were convicted in March last year on conspiracy charges in a US district court in Connecticut. Prosecutors earlier proved a sham reinsurance deal sought to inflate AIG loss reserves by about $US500 million ($776 million).
Handing down the sentence, Judge Christopher Droney said although Mr Garand did not personally profit from the transaction, he knew he was breaking the law.
“He fell far short of discharging his responsibility to investors,” he said.
Mr Garand was ordered to report to prison on April 22, but lawyers will ask the court to allow him to remain free on bail pending appeal. Two former Gen Re executives – Senior Counsel Robert Graham and CFO Elizabeth Monrad – will be sentenced in April.
Mr Garand, 61, who was in the role from 1994 until 2005, is the third insurance executive to be jailed after former Gen Re CEO Ronald Ferguson and former AIG reinsurance VP Christian Milton were sentenced earlier this year.
Five former Gen Re and AIG executives were convicted in March last year on conspiracy charges in a US district court in Connecticut. Prosecutors earlier proved a sham reinsurance deal sought to inflate AIG loss reserves by about $US500 million ($776 million).
Handing down the sentence, Judge Christopher Droney said although Mr Garand did not personally profit from the transaction, he knew he was breaking the law.
“He fell far short of discharging his responsibility to investors,” he said.
Mr Garand was ordered to report to prison on April 22, but lawyers will ask the court to allow him to remain free on bail pending appeal. Two former Gen Re executives – Senior Counsel Robert Graham and CFO Elizabeth Monrad – will be sentenced in April.