Former CFO of General Reinsurance Corp., Elizabeth Monrad, was sentenced to 18 months in prison

The former CFO of General Reinsurance Corp., Elizabeth Monrad, was sentenced to 18 months in prison and fined $250,000 for helping defrauding American International Group Inc investors in 2000.

Monrad, 54, and four other insurance executives were convicted in February 2008 for their roles in a fraud that cost AIG shareholders as much as $597 million.

Monrad, who was sentenced today in a Hartford, Connecticut, courtroom, was the fourth executive from the insurance company to before the judge.

Recently, U.S District Judge Christopher Droney sentenced the former CEO, Ronald Ferguson, to two years in prison, 4-years was given to former Vice President Christian Milton and the former Senior Vice President Christopher Garand received one year.

According to reports, on October 26, 2000, AIG said that premiums increased in the third quarter of that year as loss reserves for claims fell.  Five days later, then-CEO Maurice “Hank” Greenberg asked Ferguson for help with AIG’s reserves.

AIG and General Re engaged in the transfers of policies and premiums between the companies that allowed AIG to inflate its loss reserves by $500 million

U.S Attorney Eric Glover used an interview that Monrad did with Bloomberg News were she professed her innocence against her in the courtroom. “Her lack of remorse and respect for the jury verdict should be taken into account,” he said.

“Her basic claim was that she didn’t know AIG would book this improperly, but she knew form the stat.  This case is not about policing the books of another company.  It’s about the fact that Ms. Monrad helped create a sham transaction and deceived the investing public.”

Monard’s attorney submitted 95 letters from supporters asking the judge for leniency.