HARTFORD, CONN–A participant involved in what the government says was a sham transaction to inflate American International Group's financial picture wrote an e-mail shown in court today that joked about how AIG would account for the deal.

The evidence presented at the trial of five insurance executives in U.S. District Court here came as the government closed its case against the group.

They are accused of securities fraud for an arrangement between AIG and General Reinsurance subsidiary Cologne Re Dublin, worked out in 2000, that appeared to boost AIG loss reserves by $500 million in 2000 and 200l.

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