Christopher Garand, former SVP and chief underwriter at General Reinsurance Corp., was sentenced to a year and a day in federal prison and fined $150,000 for a securities fraud scandal that authorities say cost shareholders of American International Group Inc. more than $500 million, the AP reports.

Prosecutors said the scheme involved AIG paying Gen Re in a sham deal to take out reinsurance policies with AIG in 2000 and 2001. The scheme reportedly boosted AIG's stock prices and inflated reserves by $500 million.

Garand is the third of five former executives to be sentenced.

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