Ex-bosses convicted of AIG fraud

Ronald Ferguson, former boss of reinsurance firm General Re, was among those found guilty by a US jury and could face fines and years in jail.

The five were convicted in connection with a deal between AIG and General Re dating back to 2000.

AIG has previously admitted overstating its profits by 10% from 2000 to 2004.

In 2006 AIG agreed to pay more than $1.6bn (£813m) to settle state and federal charges of accounting abuses.

Investigations into the matter forced AIG's boss of nearly 40 years, Maurice "Hank" Greenberg to step down from his post in March 2005, although he has always denied wrongdoing and he faces no criminal charges.

General Re is a unit of billionaire investor Warren Buffett's Berkshire Hathaway holding company.

But Mr Buffett has not been implicated in any of the investigations relating to the improper deal and did not testify in the case.

Appeals likely

Also convicted were Elizabeth Monrad, General Re's former chief financial officer, Robert Graham, the firm's former assistant general counsel, Christopher Garand, a former General Re senior vice president and AIG former head of reinsurance Christian Milton.

Prosecutors accused them of misleading investors by helping AIG to fraudulently inflate its loss reserves by $500m (£254m), making its financial results look better than they were.

Mr Ferguson's lawyer Cliff Schoenberg and some of the other defendants said they would appeal against the charges, which included mail fraud, securities fraud and making false statements to the Securities and Exchange Commission.

"This is a very sad day - not only for Ron Ferguson, but for our criminal justice system," Mr Schoenberg said.

"I and the rest of Ron's legal team will not rest until we see him - and justice - vindicated."

The judge set a sentencing date of May 15 for all defendants.

RELATED INTERNET LINKS
General Reinsurance
AIG's corporate website
The BBC is not responsible for the content of external internet sites