Former American International Group (AIG) CEO Maurice “Hank” Greenberg may be prosecuted for his management of the US company he is usually credited with building into a global giant.

New York Attorney-General Eliot Spitzer told a US television news program last week that while he won’t bring a case against AIG because the board is co-operating with him, he may pursue civil or even criminal charges against Mr Greenberg.

The Los Angeles Times says AIG has lost an estimated $US50 billion in value since Mr Spitzer and the Securities Exchange Commission first began investigating its activities in February.

And it’s possibly going to get worse for AIG before it gets better. The group’s extensive operations in Florida may be at risk after the Florida Office of Insurance Regulation last week demanded the insurer submit information before July 1 about the misrepresentations it has admitted it made on financial statements.

AIG has been at the centre of a number of investigations over financial reinsurance deals with General Re.

In April the group’s Bermuda headquarters was sealed for 12 hours and the new management warned staff not to destroy or remove files.

The Florida regulator says it has issued an order in which AIG must report on the nature and extent of any wrongdoing and “remove any parties culpable in this matter” – which suggests some of AIG’s 43 Florida entities may be at threat.

“Failure to comply with the order may lead to the suspension of AIG’s licensed companies in Florida and other potential action against these companies and affiliated parties,” a statement from the regulator said.