http://jurist.law.pitt.edu/paperchase/2006/02/insurance-giant-aig-settles-fraud-case.phpThursday, February 09, 2006
Insurance giant AIG settles fraud case for $1.6 billion
James M Yoch Jr at 1:24 PM ET
American International Group (AIG) , one of the world's largest insurance companies, has agreed to pay $1.64 billion to settle fraud, bid-rigging and improper accounting charges, New York Attorney General Eliot Spitzer announced on Thursday. The settlement, which does not include former chairman and CEO Maurice "Hank" Greenberg , ends civil litigation against the insurance company filed by the New York Attorney General's Office, the New York State Insurance Department and the US Department of Justice , and will distribute money to investors, policyholders, and other injured states as well as the named plaintiffs.
As part of the pact, the US Securities and Exchange Commission also settled with AIG for $800 million. The charges alleged that AIG made multi-million dollar transactions with Gen Re insurance group, a subsidiary of Berkshire Hathaway , to improve the company's appearance of profitability. AP has more.
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