Former Gen Re Exec to be sentenced April 30

 

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25 February 2009 Wednesday 12:01 pm EST

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Former Gen Re Exec to be sentenced April 30

Chad Hemenway

HARTFORD, Conn.



The last of five former executives of insurance in a sham finite reinsurance deal has a hearing date to be sentenced.

Robert Graham, former assistant general counsel at General Reinsurance Corp., is to be sentenced in federal court in Hartford, Connecticut, April 30, according to court documents.

Graham was convicted about a year ago with the former CEO of Gen Re Ronald Ferguson, Elizabeth Monrad, Christian Milton and Christopher Garand on charges of conspiracy, securities fraud, false statements to the U.S. Securities and Exchange Commission and mail fraud in connection with a fraud finite reinsurance transaction between Gen Re and American International Group Inc

Ferguson was sentenced on 16 December to two years in prison plus two years probation and fined $ 200,000 after being convicted of 16 counts. The sentence was well below the amount of years Ferguson may have been in prison, according to federal guidelines. The U.S. Attorney's Office filed court papers indicating he may appeal against the penalty Ferguson (BestWire, 23 January 2009).

Ferguson's lawyers have notified the court they had to use Ferguson's conviction and sentence, according to court documents (BestWire, Jan. 13, 2009).

Milton was the second group to be sentenced. Former Vice President AIG was given four years in prison and was ordered to pay $ 200,000 for his role in the comedy of finite reinsurance deal (BestWire, Jan. 27, 2009).

Milton's lawyers filed a motion requesting the release of Milton while he appeals his sentence, according to court documents also show that Milton already paid his fine. The government filed a motion in opposition to the release of Milton. Milton is scheduled for delivery on 29 April.

Monrad, former chief financial officer of Gen Re, is scheduled to be sentenced April 2. Garand, former Gen Re Senior Vice President and chief underwriter, is scheduled to be sentenced March 4.

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway @ ambest.com)

26 February 2009

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