: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home/lifeinsu/public_html/includes/common.inc on line 1782.
: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home/lifeinsu/public_html/includes/common.inc on line 1782.
The New York attorney general, Eliot Spitzer, is expected to expand a civil lawsuit against Mauri... Suit Against AIG Figure Ma | Life insurance for seniors

The New York attorney general, Eliot Spitzer, is expected to expand a civil lawsuit against Mauri... Suit Against AIG Figure Ma

The New York attorney general, Eliot Spitzer, is expected to expand a civil lawsuit against Maurice R. Greenberg, the former American International Group chairman and chief executive, as early as next week, according to a person briefed on the case.

The amended complaint is expected to include additional civil fraud charges against Mr. Greenberg, whose lawyers have repeatedly said that he is not guilty and will fight all allegations against him.

In May, Mr. Spitzer sued A.I.G., Mr. Greenberg and Howard I. Smith, A.I.G.'s former chief financial officer, accusing them of manipulating financial statements to bolster the company's results and misleading regulators and investors. At that time, his office decided not to pursue criminal charges against Mr. Greenberg, although the office continued to investigate.

While the addition of civil fraud charges may be seen as a setback for Mr. Greenberg, the realization that Mr. Spitzer's office will not be pursuing criminal charges is likely to come as a relief to Mr. Greenberg and his supporters.

Describing transactions that Mr. Greenberg initiated with General Re, Mr. Spitzer said on "This Week With George Stephanopoulos" on ABC: "The evidence is overwhelming that these were transactions created for the purpose of deceiving the market. We call that fraud. It is deceptive. It is wrong. It is illegal."

Spokesmen for the attorney general's office, A.I.G. and Mr. Greenberg declined to comment yesterday. The Wall Street Journal reported yesterday on the plan to amend the complaint.

A.I.G. is expected to settle with Mr. Spitzer and the New York Department of Insurance by the end of the year, said the person involved in the negotiations. The company, which is cooperating with regulators, has twice restated its financial statements to correct accounting errors.

Mr. Greenberg, who built A.I.G. into a global giant in commercial and life insurance over four decades, continues to face two criminal investigations by federal prosecutors as well as a civil investigation by the Securities and Exchange Commission.

The Justice Department is looking at whether Mr. Greenberg intended to mask A.I.G.'s true financial condition. Of particular interest is a transaction, initiated by Mr. Greenberg in December 2000, with the General Re unit of Berkshire Hathaway; Mr. Spitzer says the transaction artificially bolstered A.I.G's reserves.

Mr. Greenberg's legal team- led by David Boies at Boies Schiller Flexner - has argued that many of the accounting issues in question were ill defined at the time.

The United States attorney's office in Manhattan, meanwhile, is investigating whether Mr. Greenberg manipulated the price of A.I.G. shares by buying shares outside the limits of the company's stated buyback program. Such conduct would be a violation of federal securities law.

While Mr. Spitzer did not charge Mr. Greenberg with any such conduct, he highlighted the activity in his civil complaint. Mr. Greenberg called an A.I.G. trader from his private jet on Feb. 18, 2005, when A.I.G.'s stock was faltering, telling him to "be a little bit more aggressive" in buying and asking the trader to continue buying near the close, a practice that is widely discouraged by the S.E.C.

Mr. Spitzer did not contend that Mr. Greenberg manipulated A.I.G.'s stock in his directives to the trader; he simply used the anecdote to outline Mr. Greenberg's presumed motive for the other improper transactions outlined in the complaint.

Stepping back from a criminal prosecution of Mr. Greenberg comes amid several retreats by Mr. Spitzer, who is seeking to be the Democratic candidate for governor of New York.

This is cache, read story here


Life Insurance and other General Insurance Links

Sitemap

Life InsuranceLinks

Browse archives

« August 2017  
Su Mo Tu We Th Fr Sa
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31    

Who's online

There are currently 0 users and 42 guests online.

Syndicate

XML feed

User login