HARTFORD, Conn. The former chief financial officer at General Re Corp. was sentenced today to 18 months in federal prison for her role in an accounting fraud scandal that artificially propped up the stock price of insurer American International Group.

Elizabeth Monrad, 52, of New Canaan also was fined $250,000 for her role in the case, which authorities say cost AIG shareholders more than $500 million. She remains free on bail pending an expected appeal of her conviction.

U.S. District Judge Christopher Droney said Monrad had plenty of opportunity to stop the deal and noted that she was involved from the beginning.

"She was the financial expert for General Re in this transaction," Droney said. "Her advice was critical to concealing the paper trail."

The judge added, "A message must be sent to the business and financial communities that this kind of conduct will not be tolerated."

Monrad's lead attorney, Reid Weingarten, told the judge that Monrad was new to the job at the time of the transaction, that her objections to parts of the deal were ignored and that she deferred to respected businessmen, including former AIG chief executive Maurice "Hank" Greenberg and former Gen Re chief executive Ronald Ferguson.

"It didn't immediately occur to her that ... "I'm in the middle of a conspiracy,"' Weingarten said. He also said Monrad trusted AIG accountants to follow all laws in documenting the deal.

By The Associated Press