Former Gen Re Exec to Be Sentenced April 30

 

Monday, Mar 09,2009, 3:04:20 PM   Click:

Copyright 2009 A.M. Best Company, Inc.All Rights Reserved BestWire

February 25, 2009 Wednesday 12:01 PM EST

337 words


Former Gen Re Exec to Be Sentenced April 30

Chad Hemenway

HARTFORD, Conn.

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

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

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

Ferguson was sentenced on Dec. 16 to two years in prison plus two years supervised release and a $200,000 fine after being found guilty on 16 counts. The sentence was well below the amount of years Ferguson could have been given in prison, according to federal sentencing guidelines. The U.S. Attorney's Office filed court papers indicating it could appeal Ferguson's sentence (BestWire, Jan. 23, 2009).

Attorneys for Ferguson have notified the court that they plan to appeal Ferguson's conviction and sentence, according to court documents (BestWire, Jan. 13, 2009).

Milton was the second of the group to be sentenced. The former AIG vice president was given four years in jail and was ordered to pay $200,000 for his role in the sham finite reinsurance deal (BestWire, Jan. 27, 2009).

Milton's attorneys have filed a motion asking for Milton's release while he appeals his sentence, according to court records, which also show Milton already paid his fine. The government has filed a motion in opposition to Milton's release. Milton is scheduled to surrender on April 29.

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)

February 26, 2009

Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
Terms and Conditions Privacy Policy