HARTFORD, Conn. — A former executive of General Re Corp. was sentenced Thursday to 366 days in prison for his role in an accounting scandal that authorities say cost shareholders of American International Group more than $500 million. Robert Graham, 61, will also have to serve two years of supervised release after prison and pay a $100,000 fine. He had faced up to life in prison and a fine of up to $46 million.
“I realize there are no do-overs in life,” Graham, a senior vice president and assistant general counsel at Gen Re, told U.S. District Judge Christopher Droney. “Nothing I can say or do now can change what has happened or its impact on the lives of others or on me.”
Federal prosecutors say New York-based AIG paid Stamford-based Gen Re in a secret deal to take out reinsurance policies with AIG in 2000 and 2001. They say the scheme propped up AIG’s stock price and inflated reserves by $500 million.
