Mr. Segal was convicted in June 2004 of embezzling more than $20 million from his firm's premium trust account. He has been in jail since his conviction.

In addition to the prison term, the court upheld a $30 million judgment against Mr. Segal and ordered restitution of over $800,000, according to Randall Samborn, a representative for the Northern District of Illinois U.S. Attorney's Office.

Mr. Segal will be transferred to a federal minimum security prison in Yunkton, S.D., or Oxford, Wis., to serve out his term, Mr. Samborn said. Mr. Segal, 63, will receive credit for time served, he added. The defense will have 10 days to file for an appeal, said Mr. Samborn, but this will not prevent Mr. Segal's transfer.

Conviction Recap

Mr. Segal was convicted of 26 counts–three for embezzlement, 13 for mail fraud, seven for making false statements, one for wire fraud, one for tax fraud conspiracy, and one for racketeering. However, Judge Castillo, after the conviction, threw out the seven counts of making false statements, but upheld the remaining 19 convictions for fraud, racketeering, embezzlement and tax conspiracy.

According to the prosecution's case, Near North gave illegal discounts on insurance premiums to well-heeled Chicago politicians and other high-profile individuals. Mr. Segal was accused of using some of the funds for his personal use.