A former senior vice president at Stamford-based General Re Corp. is to be sentenced today for an accounting fraud scandal that authorities say cost shareholders of insurer American International Group Inc. more than $500 million.
Christopher Garand is one of five executives convicted in the case. He faces up to 160 years in prison and a fine of up to $29.5 million when he is sentenced in U.S. District Court in Hartford.
Federal prosecutors say the scheme involved New York-based AIG paying Gen Re in a secret deal to take out reinsurance policies with AIG earlier this decade. They say the scheme propped up AIG’s stock prices and inflated reserves by $500 million.
Garand was a senior Gen Re vice president from 1994 until 2005. (AP)
