Former AIG Chairman and CEO Maurice Greenberg is once again embroiled in legal action, with the octogenarian insurance legend calling on the New York State Supreme Court to drop a civil fraud case against him.

The case dates back to charges brought in 2005 by then-New York Attorney-General Eliot Spitzer, who alleged Mr Greenberg and former AIG CFO Howard Smith had central roles in a sham reinsurance deal struck between the insurer and Gen Re.

Prosecutors have since proved the deal struck in 2000 improperly boosted AIG loss reserves by up to $US500 million ($535 million).

The court is expected to hear oral arguments to drop the civil suit this week.

In a depositions hearing last month, Mr Greenberg said he never authorised the sham deal, which resulted in the conviction of five former AIG and Gen Re executives in 2008. Mr Smith made similar statements during his evidence.

Mr Greenberg’s agreement to testify at the hearing follows the expiry of the statute of limitations for criminal charges. The hearing records were submitted to court last week.

But current New York Attorney-General Andrew Cuomo continues to vigorously pursue the matter.

Documents submitted by his office to the court state allege “it is not possible to find greater involvement in a fraudulent transaction by a CEO”.

Mr Greenberg is seeking to close the door on a series of lawsuits that followed his acrimonious departure from AIG in 2005.

He and Mr Smith negotiated a final settlement with AIG in November last year, while Mr Greenberg earlier agreed to pay another $US15 million ($16 million) to settle other civil charges brought by the US Securities and Exchange Commission.