HARTFORD, CONN.–The jury finished its third day of deliberations on the fate of five insurance executives accused of putting together a sham reinsurance deal to artificially bolster the financial picture of American International Group.
A panel of nine men and three women completed a full day of deliberation without reaching a verdict today. They are expected to continue deliberations in U.S. District Court here tomorrow. Attorneys anticipate the jury could take up to a week to arrive at a verdict.
On trial are Ronald Ferguson, (former chief executive of General Reinsurance, a Berkshire Hathaway subsidiary), Christopher Garand (a former Gen Re senior vice president), Robert Graham, (Gen Re's former senior vice president and counsel), Elizabeth Monrad (Gen Re's former chief financial officer) and Christian Milton (former AIG vice president for reinsurance).
The group is accused of conspiring to create a sham finite reinsurance transaction that helped artificially improve the financial picture of American International Group in the fourth quarter of 2000 and first quarter of 2001.
They face a multi-count indictment including conspiracy to violate federal securities laws and commit mail fraud, as well as with securities fraud and making false statements to the Securities and Exchange Commission.
If convicted, Mr. Garand faces a maximum of 160 years in prison and up to $29.5 million in fines. The remaining four could receive a maximum of 230 years in prison and $46 million in fines.
In addition to those on trial, the government listed a number of other executives as unindicted co-conspirators in the case, including Maurice Greenberg, former AIG chairman and CEO, who was forced from the company in 2005 when the case came under investigation.
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