AIG VP Gets 4 Years For Fraud

Friday, Jan 30, 2009  |  Updated 10:40 AM EDT
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AIG VP Gets 4 Years For Fraud

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What will $500 million get you? Four years in prison if you are a former executive of American International Group convicted in a fraud case that authorities say cost shareholders more than $500 million.

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What will $500 million get you? Four years in prison if you are a former executive of American International Group convicted in a fraud case that authorities say cost shareholders more than $500 million.

Christian Milton, 61, of Pennsylvania and four former executives of General Re Corporation were convicted last year of conspiracy, securities fraud, mail fraud and making false statements to the Securities and Exchange Commission.

Milton declined to comment during a hearing in Hartford federal court Tuesday. He was ordered to report to prison March 25. His lawyers said they're working on an appeal.

Judge Christopher Droney also fined Milton $200,000. Authorities expect him to be deported to his native England after he serves his sentence.

Milton was AIG's vice president of reinsurance from 1982 until 2005.

Prosecutors said New York-based AIG paid Gen Re in a secret side agreement to take out reinsurance policies with AIG in 2000 and 2001, propping up AIG's stock price and inflating reserves by $500 million.

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