Ronald E. Ferguson, 66, of Fairfield, Connecticut, the former CEO of GenRe Corporation, a unit of AIG, was sentenced to 2 years in prison plus ordered to pay a $200,000 fine yesterday for his role in perpetuating a fraudulent conspiracy to fraudulently inflate the value of AIG stock. See FraudTalk's earlier post on this story here. Ferguson had been convicted by a jury on February 28, 2008 on charges of conspiracy, securities fraud, false statements to the SEC and mail fraud. His co-conspirators, Christopher P. Garand, Elizabeth A. Monrad, Robert D. Graham and Christian M. Milton were also found guilty in the case.Read the DOJ announcement here.
You mistakenly state that Gen Re is a subsidiary of AIG. It was a stand-alone company until it was acquired by Berkshire Hathaway in December 1998. AIG never owned it, although the two companies worked extremely closely together.
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