Ronald Ferguson (photo: Bloomberg)
Ronald Ferguson, the former CEO of General Re Corp., was sentenced today to two years in prison and fined $200,000 for his role in a scheme that cost shareholders of AIG more than $500 million. The AP reports that Ferguson, who was convicted in February of conspiracy, securities fraud, mail fraud and making false statements to the SEC, must serve two years of supervised release after the prison time.
As previously discussed here in detail, Judge Christopher Droney of the US District Court for the District of Connecticut ruled in early November that the loss by shareholders of AIG was more than $500 million, which meant that Ferguson and others convicted of the scheme could have faced up to life in prison under sentencing guidelines tied to the amount of the loss.
Prosecutors had recommended that the defendants should receive a “substantial” prison sentence, while the probation department had recommended sentences of 14 years to more than 17 years for each defendant. Judge Droney, however, said today that he considered Ferguson’s history of community service and volunteerism in setting a sentence far below federal guidelines.
“This case is a tragedy, especially for Ron Ferguson,” Droney said. “We will never know why such a good man did such a bad thing.” Droney also said that he received nearly 400 letters from Ferguson’s supporters, many of whom spoke on his behalf today.
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[...] AIG and General Re. Corp. This follows the sentencing on December 16 of Ronald Ferguson (previously discussed here), the former CEO of General Re Corp., to two years in prison and a $200,000 fine for his role in [...]