HARTFORD, Connecticut (AP) — A former executive of insurance heavyweight American International Group Inc. was sentenced to four years in prison yesterday in a fraud case that authorities say cost shareholders more than $500 million.

Christian Milton declined to comment during a hearing in US District Court in Hartford. He was ordered to report to the federal Bureau of Prisons on March 25, and his lawyers said they were preparing an appeal.

Judge Christopher Droney also fined Milton $200,000.

Milton, 61, AIG's vice-president of reinsurance from 1982 to 2005, was convicted last year of conspiracy, securities fraud, mail fraud and making false statements to the Securities and Exchange Commission.

Authorities expect Milton to be deported to his native England after he serves his sentence. The investigation also led to the convictions of four General Re Corp. executives last year for their roles in manipulating AIG's financial statements.

Prosecutors said New York-based AIG paid Gen Re in a secret side agreement to take out reinsurance policies with AIG in 2000 and 2001, propping up AIG's stock price and inflating reserves by $500 million. Reinsurance policies are back-ups purchased by insurance companies to completely or partly insure the risk they have assumed for their customers.

Milton's lawyer, Frederick Hafetz, told the judge before the sentence was announced that Milton is a good person who was known for helping AIG employees with their problems, including two workers who died from Aids in the 1980s.

Hafetz also said Milton didn't benefit personally from the fraud, which he called an aberration in Milton's life.

"He has lived a life that our society would prize in its most pious ways," Hafetz said.

Assistant US Attorney Ray Patricco countered that Milton has shown no remorse for his actions and hasn't taken responsibility. He also claimed Milton has done little charitable work.

"He knew exactly what was at stake in this endeavour," Patricco said. The judge agreed with the prosecutor.