Feb 10 Former American International Group Inc
Chief Executive Maurice "Hank" Greenberg admitted to his
involvement in two fraudulent reinsurance deals as part of a
settlement of an accounting fraud lawsuit, New York Attorney
General Eric Schneiderman said on Friday.
The lawsuit was brought in 2005 after AIG said it had
engaged in certain improper reinsurance transactions, while
Greenberg was CEO and Howard Smith was chief financial officer,
that fundamentally misrepresented the insurer's finances between
2000 and 2004.
"After over a decade of delays, deflections, and denials by
Mr. Greenberg, we are pleased that Mr. Greenberg has finally
admitted to his role in these fraudulent transactions and will
personally pay $9 million to the State of New York,"
Schneiderman said in a statement.
Greenberg and Smith also agreed to return the multi-million
dollar bonuses they received while the frauds were on AIG's
books, Schneiderman said.
The two former executives of AIG were asked stand trial for
orchestrating sham transactions by New York's top court in June
last year. The court had ruled at the time that the state could
seek to recoup from Greenberg and Smith tens of millions of
dollars in bonuses and interest.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Savio