Chris Garand receives one-year prison term for AIG fraud
Former General Re executive Christopher Garand was sentenced to a year and a day in prison for his part in a fraudulent scheme to manipulate AIG’s financial statements according to the Department of Justice, Dow Jones reports.
Christopher Garand, 61, of Upper Saddle River, NJ, also was fined $150,000 by US District Judge Christopher Droney in Hartford, Connecticut.
A jury found Garand guilty last month of one count of conspiracy to violate federal securities laws and to commit mail fraud, three counts of securities fraud, three counts of making false statements to the Securities and Exchange Commission, and three counts of mail fraud.
Four other defendants also were found guilty. Ronald Ferguson, General Re's chief executive from 1987 through September 2001, was sentenced to two years in prison and fined $200,000 in December. A month later, Christian Milton, AIG's vice president of reinsurance from about April 1982 until March 2005, was sentenced to four years in prison and fined $200,000. Two other former General Re executives await sentencing.
General Re is owned by Warren Buffett's Berkshire Hathaway.
The court found in October that AIG's shareholders lost between $544m and $597m because of the fraudulent scheme.
