AIG Executives Settle over $15 Million SEC Fraud Charges
The U.S. Securities and Exchange Commission charged two former American International Group (AIG) executives with fraud and securities laws violations. The two ex-AIG corporate leaders agreed to settle the government charges in U.S. District Court for the Southern District of New York.
Washington government lawyers with the Securities and Exchange Commission filed fraud charges against former American International Group executives.
Washington, D.C.–Government lawyers for the United States Securities and Exchange Commission (SEC) charged former American International Group Chairman and CEO Maurice “Hank” Greenberg and former Vice Chairman and CFO Howard Smith for their participation and involvement in AIG’s improperly reported financial results between 2000 and 2005 in U.S. District Court for the Southern District of New York.
According to court documents, Greenberg and Smith agreed to settle the securities fraud charges brought by a team of government attorneys and pay disgorgement and penalties totaling $15 million and $1.5 million respectively. SEC regulators accused the top former AIG leaders of making material misstatements and misrepresenting accounting transactions, which inflated AIG’s reported financial results.
These improper accounting practices gave consumers and investors the false impression that the insurance and financial services industry leader was consistent with double-digit growth.