- The Washington Times - Friday, August 7, 2009

NEW YORK (AP) | Former American International Group Inc. CEO Maurice “Hank” Greenberg is expected to pay a $15 million fine to settle fraud allegations brought by the Securities and Exchange Commission, according to the Wall Street Journal.

Former Chief Financial Officer Howard Smith is expected to pay a $1.5 million fine, the Journal said in a report on its Web site Thursday, citing anonymous people.

The allegations are tied to Mr. Greenberg’s ouster in 2005. The next year, AIG paid $1.6 billion to settle allegations of improper accounting.

AIG nearly collapsed last fall. It was bailed out by the government, which now owns about an 80 percent stake in the insurer.

A spokesman for Mr. Greenberg was not immediately available to comment. AIG declined to comment.

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