Report: Former AIG CEO Greenberg to pay $15 million to settle SEC fraud allegations
By APThursday, August 6, 2009
Report: Former AIG CEO to settle fraud charges
NEW YORK — Former American International Group 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 Greenberg’s ouster in 2005. The following 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 Greenberg was not immediately available to comment. AIG declined to comment.
