Greenberg settles with regulator for $17.9 million
Iconic former AIG CEO Maurice “Hank” Greenberg will pay $US15 million ($17.9 million) to settle civil charges brought by the US Securities and Exchange Commission (SEC).
The federal regulator alleged numerous improper accounting transactions that inflated the insurer’s reported financial results between 2000 and 2005.
Similar charges were levelled at former CFO Howard Smith, who has agreed to a $US1.5 million ($1.79 million) settlement.
The SEC says “material mis-statements” by Mr Greenberg and Mr Smith enabled AIG to create the false impression it consistently met or exceeded key earnings and growth targets.
Under the settlement, neither man has admitted or denied the allegations.
Mr Greenberg, 84, was forced to resign as AIG chief in 2005. He is still fighting civil fraud charges brought by the New York Attorney-General following a probe into accounting practices at AIG.
The company reached a $US1.64 billion ($1.95 million) settlement with the SEC and New York State on related charges in 2006.
The federal regulator alleged numerous improper accounting transactions that inflated the insurer’s reported financial results between 2000 and 2005.
Similar charges were levelled at former CFO Howard Smith, who has agreed to a $US1.5 million ($1.79 million) settlement.
The SEC says “material mis-statements” by Mr Greenberg and Mr Smith enabled AIG to create the false impression it consistently met or exceeded key earnings and growth targets.
Under the settlement, neither man has admitted or denied the allegations.
Mr Greenberg, 84, was forced to resign as AIG chief in 2005. He is still fighting civil fraud charges brought by the New York Attorney-General following a probe into accounting practices at AIG.
The company reached a $US1.64 billion ($1.95 million) settlement with the SEC and New York State on related charges in 2006.