Judge: AIG reserves fraud caused big investor loss

NEW YORK (Reuters) – A financial manipulation scheme cost American International Group Inc investors at least $544 million, a judge has estimated, a finding that could mean the five former executives convicted in the fraud will face lengthy prison terms when sentenced.

The case is unrelated to AIG's mortgage-related losses that led to a near collapse of the company in September and an $85 billion emergency line of credit from the U.S. Federal Reserve.