SEC: Former AIG CEO Greenberg to pay $15 million fine to settle accounting fraud charges

SEC: Ex-AIG CEO Greenberg settles fraud charges

NEW YORK — The Securities and Exchange Commission said Thursday that former American International Group CEO Maurice “Hank” Greenberg agreed to pay a $15 million fine to settle fraud charges.

The charges are tied to an accounting scandal earlier this decade at AIG that led to Greenberg’s ouster in 2005. The following year, AIG paid more than $1.6 billion to settle charges of improper accounting.

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

The SEC said AIG’s former chief financial officer, Howard Smith, will pay a $1.5 million fine tied to the investigation.

In complaints against Greenberg and Smith, the SEC said the pair were responsible for making misstatements that falsely showed AIG met or exceeded earnings and growth targets.