Ex-AIG chief may face civil charges

A Wells notice was sent to Maurice Greenberg, former chief executive of AIG, last Friday, The Wall Street Journal reported.
MAY 21, 2008
The Securities and Exchange Commission has warned Maurice Greenberg, the former chief executive of American International Group Inc. of New York, that he may face civil charges for his alleged role in the company’s attempt to inflate artificially its financial information, The Wall Street Journal reported. A Wells notice was sent to Mr. Greenberg last Friday, the Journal said. Although the notice means that the regulator plans to recommend enforcement proceedings, respondents have the opportunity to contact the SEC and make their case. The missive is the latest chapter in the fallout from a transaction between AIG and Stamford, Conn-based General Re Corp., a reinsurance unit of Berkshire Hathaway based inOmaha, Neb. Four former Gen Re executives and an ex-AIG executive have been accused of conspiring to inflate falsely AIG’s loss reserves by $500 million through a series of transactions between the two companies. Mr. Greenberg, who was ousted from AIG in 2005, had been identified as an unindicted alleged co-conspirator in the case. The SEC’s letter came a day after a U.S. District Court judge in Connecticut asserted that there was “sufficient evidence” to show that the conspiracy to exaggerate AIG’s loss reserves and fool the company’s investors all started with a call that Mr. Greenberg made to General Re’s ex-CEO Ronald Ferguson, one of the five convicted executives, according to court documents.

Latest News

Mesirow acquires part of flexPATH in second retirement deal of 2026
Mesirow acquires part of flexPATH in second retirement deal of 2026

Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.

Advisor moves: LPL lands $350M veteran advisor duo in Florida
Advisor moves: LPL lands $350M veteran advisor duo in Florida

Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.

SEC accuses crypto firm founder of running $425 million Ponzi scheme
SEC accuses crypto firm founder of running $425 million Ponzi scheme

It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.

MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products
MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products

Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.

Fintech bytes: Wealth tech firms target advisor productivity with new integrations
Fintech bytes: Wealth tech firms target advisor productivity with new integrations

Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income