In-House Counsel
Prosecutors Seek 230-Year Sentence for Ex-Gen Re Lawyer
Posted Oct 10, 2008, 04:49 am CST
By Debra Cassens Weiss
Prosecutors are seeking a sentence of up to 230 years in prison for a former senior lawyer at Gen Re convicted for helping structure a sham insurance deal with American International Group.
The lawyer, Robert Graham, was convicted of securities fraud in February along with four other Gen Re executives, Corporate Counsel reports. Prosecutors sought the long sentence at a Sept. 25 hearing before U.S. District Judge Christopher Droney of Hartford, Conn.
Prosecutors contended at trial that Gen Re paid $10 million to AIG, but the insurer secretly returned the money, according to the story. AIG relied on the transaction to book $500 million in loss reserves in an effort to increase its stock price. Graham, now 60, was accused of helping hide the fraud by structuring the deal through a holding company.
Graham’s lawyer, Alan Vinegrad of Covington & Burling, argued in the hearing that Graham was the least culpable of the defendants, and he didn’t benefit from the scheme, the story says. He said Graham’s behavior was a "dramatic deviation from an exceptional life."
White-collar defense lawyer Michael Cornacchia told the publication that the long sentence sought by prosecutors “sounds draconian to me." Former Worldcom CEO Bernie Ebbers is serving a 25-year prison term, and former Enron CEO Jeffrey Skilling is serving 24 years in prison.
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Posted by NG - 1 month, 1 week, 4 days, 10 hours, 7 minutes ago
It’s time to make high economic crimes punishable by death, like they do in the People’s Republic of China, one of our largest trading partners, and largest debt holder.