Greenberg settles suit over AIG deals N.Y. calls fraudulent
February 14, 2017 by CHRIS DOLMETSCH, SONALI BASAK
(Bloomberg) — Ex-American International Group Inc. Chief Executive Officer Maurice “Hank” Greenberg admitted to taking part in two deals to make the insurer’s financial condition look better than it was as part of a $9.9 million settlement with New York that has dragged out for almost a dozen years, the state’s top lawyer said.
The settlement, announced Friday by New York state Attorney General Eric Schneiderman, resolves a legal battle in which Greenberg, 91, and his high-powered lawyer, David Boies, squared off against three successive state attorneys general who accused him of fraud. The accord also includes Howard Smith, AIG’s former chief financial officer. As part of the deal, he and Greenberg agreed to give up $9.9 million in bonuses they received from 2001 to 2004, when the disputed transactions were reflected in AIG’s books, Schneiderman said.
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