Gen Re, AIG Execs Face Potential Life Terms for LPT Deal

HARTFORD, Conn. - Under federal sentencing guidelines, five convicted former executives of General Re Corp. and American International Group Inc. may face life sentences for their participation in a fraudulent reinsurance deal, a Connecticut federal judge has ruled. United States of America v. Ronald E. Ferguson, et al., No. 3:06CR137 (D. Conn.).

On Oct. 31, U.S. District Judge Christopher Droney of the District of Connecticut ruled that the loss portfolio transfer (LPT) transaction between AIG and Gen Re caused more than 250 AIG investors to sustain between $544 million and $597 million in losses. The judge added 36 levels to …