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Ex-AIG Honcho Settles New SEC Case for $15M

By Harry Kimball, Newser Staff

Posted Aug 6, 2009 3:14 PM CDT

(Newser) – The SEC today simultaneously announced a complaint against former AIG chief Hank Greenberg and the resolution of the matter—a $15 million payment to settle the suit, the New York Times reports. Greenberg and a former AIG CFO were accused of “numerous improper accounting transactions” between 2000 and 2005 that artificially inflated the firm’s value. Greenberg was ousted from AIG in 2005 for similar trespasses.

“Greenberg and Smith oversaw various improper transactions that presented a false financial picture and allowed AIG to claim success in meeting its performance goals, an SEC official says. Greenberg has a more rosy take on the matter. “Mr. Greenberg appreciates the SEC’s recognition that he personally should not be charged with any fraud,” his current firm says, “and the settlement is recognition of his lack of responsibility.”

The AIG logo. (AP Photo)

Former American International Group (AIG) Inc. CEO Maurice 'Hank' Greenberg. (AP Photo)

Former American International Group (AIG) Inc. CEO Maurice R. "Hank" Greenberg. (AP Photo)

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Ex-AIG CEO Sues US Over Bailout

They say takeover violated investors' fifth amendment rights

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Matt Taibbi reports on an insane, probably illegal practice

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Agency routinely grants waivers for harshest punishments

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Company agrees to shell out up to $150 million

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OTHER STORIES ON OUR RADAR

insurance companies • accounting • AIG • Hank Greenberg • settlement • Federal government • Securities and Exchange Commission

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Ex-AIG CEO Sues US Over Bailout

They say takeover violated investors' fifth amendment rights

SEC Shredded Files to Cover Up Crimes: Whistleblower

Matt Taibbi reports on an insane, probably illegal practice

Crooked Giants Dodge SEC Penalties

Agency routinely grants waivers for harshest punishments

AIG Settles With Ex-CEO: Will Pay Fees, Return Rug

Company agrees to shell out up to $150 million

AIG's Benmosche: I'm Not Quitting

CEO is 'committed' to firm's employees

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Newser By Users

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