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
By  Bloomberg
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

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.