March 7 (Bloomberg) -- U.S. prosecutors oppose a request by a former American International Group Inc. executive convicted of fraud to visit his ailing mother in England, telling a judge he should not be allowed to travel abroad.

Christian Milton, AIG's former head of reinsurance, was convicted Feb. 25 with four former executives of General Reinsurance Corp. of conspiring to dupe investors about his company's finances.

``Milton stands convicted by a jury of serious crimes which the government believes give rise to a potentially lengthy term of imprisonment,'' Assistant U.S. Attorney Eric Glover wrote in a filing yesterday in federal court in Hartford, Connecticut. ``He should not be allowed to have his passport back.''

Milton wants to spend a week with his mother, Milton attorney Frederick Hafetz said in a motion. Milton visited her four times after his indictment in February 2006 and before his conviction, according to the motion. His bail terms allowed him to visit her only with permission of the U.S. Pretrial Services Office, it said.

Milton, who lives in Wynnewood, Pennsylvania, got permission from his pretrial services officer before Glover objected, Hafetz wrote yesterday.

Glover wrote that Milton's lawyer initially cited two reasons for the trip, including visiting his mother.

`Conduct Business'

The other reason was for Milton, 60, to ``conduct business'' at the behest of Maurice ``Hank'' Greenberg, former chief executive officer of New York-based AIG, the world's largest insurer by assets, according to the filing. Prosecutors said Greenberg, 82, was an unindicted co-conspirator in the case. Greenberg, who runs investment and insurance firms C.V. Starr & Co. and Starr International Co., wasn't charged in the Hartford case and denies any wrongdoing.

Milton's lawyer then said his client ``was no longer seeking to travel abroad to conduct business for Mr. Greenberg, and that his mother's health (which counsel for defendant Milton did not mention to the government in the first request to travel) was the reason'' for his travel request, according to the prosecution filing.

In a court filing today, Hafetz said ``I strongly recall'' mentioning the health of Milton's mother in the initial request.

Hafetz declined to comment today. Greenberg attorney Robert Morvillo did not immediately return a call seeking comment.

A separate defense filing said Milton's mother, a widow, is getting round-the-clock care at a nursing home in Surrey.

Reviving Health

``Mrs. Milton is currently bed-bound, suffering from anemia, incontinence, depression, and developing dementia,'' wrote attorney Tracy Sivitz. ``It is unclear how much longer she will survive. Mr. Milton believes his visit may help to revive her health and spirits.''

It wasn't immediately clear when U.S. District Judge Christopher Droney might rule on the travel request.

Milton and the other four executives were convicted of fraud and conspiracy. They are scheduled for sentencing on May 15.

After the jury verdict, federal prosecutor Paul Pelletier said the investigation was continuing of a sham reinsurance transaction that let AIG inflate its loss reserves by $500 million.

``We have a lot of work to do to go up the ladder in this investigation,'' Pelletier said in a telephone interview on Feb. 26. Asked who might be under investigation, Pelletier said, ``Anywhere the ladder goes.''

General Re is owned by Omaha, Nebraska-based Berkshire Hathaway Inc., run by billionaire Warren Buffett. He hasn't been charged with any wrongdoing and denies any knowledge of improper dealings.

The case is U.S. v. Ferguson, 06-cr-137, U.S. District Court, District of Connecticut (Hartford).

To contact the reporters on this story: David Voreacos in Hartford, Connecticut, at dvoreacos@bloomberg.net; Jane Mills in Hartfordt .

Last Updated: March 7, 2008 17:49 EST