Elizabeth A. Monrad, former Gen ReCFO, was sentenced last month to 18 months in federal prison forher role in a sham insurance scheme involving AIG. U.S. DistrictCourt Judge Christopher F. Droney, Hartford, Conn, also sentencedMonrad to 3 years' probation and fined her $250,000. Monrad wasfound guilty in February 2008 of conspiracy, securities fraud,making false statements to the U.S. Securities and ExchangeCommission and mail fraud. Monrad and four others were convicted ofcreating two sham insurance deals that inflated AIG's earnings. Thedeal increased AIG's loss reserves by $250 million in the fourthquarter of 2000 and $250 million in the first quarter of 2001,masking declines in loss reserves. An investigation forced AIG torestate its earnings in 2005, costing shareholders more than $500million. Others sentenced include Ronald E. Ferguson, Gen Re'sformer CEO; Robert D. Graham, former Gen RE senior vice presidentand assistant general counsel; and Christian M. Milton, vicepresident of reinsurance at AIG. A fifth defendant, Christopher P.Garand, former senior vice president and chief underwriter of thecompany's finite reinsurance operations in the United States, isstill awaiting sentencing.