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AIG executive sentenced to 4 years in prison

A former executive of insurance heavyweight American International Group Inc. today was sentenced in Hartford federal court to four years in prison in a fraud case that authorities say cost shareholders more than $500 million.

Christian Milton of Wynnewood, Pa., declined to comment during a hearing in U.S. District Court in Hartford. He was ordered to report to the federal Bureau of Prisons on March 25, and his lawyers said they were preparing an appeal.

Judge Christopher Droney also fined Milton $200,000.

Milton, 61, AIG’s vice president of reinsurance from 1982 to 2005, was convicted last year of conspiracy, securities fraud, mail fraud and making false statements to the Securities and Exchange Commission.

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The investigation also led to the convictions of four General Re Corp. executives last year for their roles in manipulating AIG’s financial statements.

Milton is the second person sentenced so far. Ronald Ferguson, the former chief executive of General Re, was sentenced in December to two years in prison and fined $200,000 for his role in the fraud. (AP)

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