Greenberg wins access to AIG docs

Ex -AIG CEO Maurice R. Greenberg will get court-ordered access to legal documents that could help him fight fraud charges, according to published reports.
FEB 21, 2008
Ex American International Group Inc. executive Maurice R. Greenberg will get court-ordered access to legal documents that could help him fight fraud charges, according to published reports. A New York state appeals court ruled that Mr. Greenberg could review the documents, which include information on an allegedly fraudulent reinsurance transaction with General Re Corp. that allowed AIG to improperly inflate its loss reserves by $500 million in 2000 and 2001, The New York Times said. The Tuesday ruling by the appellate division of New York State Supreme Court is the latest chapter in a 2005 civil lawsuit filed by former New York attorney general Eliot Spitzer against Mr. Greenberg and former AIG finance chief Howard Smith. Mr. Spitzer, now governor of New York, had charged both men with fraud related to the Gen Re deal. In turn, Mr. Greenberg was ousted from the insurer in 2005, and AIG -- originally a defendant — settled with the regulators in 2006 for $1.6 billion. Mr. Greenberg and Mr. Smith have argued that they had relied on the advice from AIG’s attorneys concerning the transaction, and that information is in the legal documents they can now view, according to the Times. An AIG spokesman told the Times the insurer would appeal the decision. These documents could also impact a criminal trial in the Federal District Court in Hartford, Conn.: Five executives — one from AIG and four from Gen Re — have been accused of creating the alleged sham transaction. Though Mr. Greenberg hasn’t been charged in this case, he was identified as an unindicted co-conspirator.

Latest News

IRA assets swell to $19.2 trillion as 401(k) rollovers drive growth
IRA assets swell to $19.2 trillion as 401(k) rollovers drive growth

IRAs now hold nearly twice the assets of 401(k) plans — and most of that money didn't arrive through annual contributions.

Women feel confident about saving, but many still keep cash in low-yield accounts
Women feel confident about saving, but many still keep cash in low-yield accounts

A new survey finds that many women prioritize financial security but continue to leave savings in accounts that may not keep pace with inflation.

SEC seeks comment on prediction-market ETFs after May pause
SEC seeks comment on prediction-market ETFs after May pause

Roundhill, Bitwise and GraniteShares funds remain on hold while the agency weighs how novel ETFs should be regulated.

Dump investment banks, buy alternative asset managers, says Oppenheimer
Dump investment banks, buy alternative asset managers, says Oppenheimer

"Shares of alternative assets managers have lagged this year as investors grow wary of private-credit exposure."

TaxStatus rolls out rules-based tool to flag advice gaps
TaxStatus rolls out rules-based tool to flag advice gaps

The fintech platform is touting a new AI-free Planning Observations feature, which draws on IRS tax records to uncover opportunities for advisors.

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

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.