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No charges against Greenberg: WSJ

November 25, 2005

NEW YORK (Reuters) – New York Attorney General Eliot
Spitzer has decided not to pursue criminal charges against
former American International Group Chief Executive Maurice
“Hank” Greenberg in connection with the insurer’s accounting
scandal, the Wall Street Journal reported on Friday.

The paper said Spitzer’s office will still focus on
civil-fraud allegations it filed against Greenberg and the
company in May, citing people familiar with the matter.

It said Spitzer’s office plans to amend the civil complaint
as early as next week to reflect new information.

Spitzer’s decision not to follow-through with criminal
charges wouldn’t leave Greenberg in the clear, the paper said.
Federal prosecutors in New York and the U.S. Justice Department
are still pursuing criminal probes on the former insurance
executive.

Greenberg and former AIG CFO Howard Smith, who were ousted
when the investigation first picked up steam, took part in
numerous fraudulent business deals that exaggerated the
strength of the company’s core underwriting business and
propped up its stock price, according to Spitzer’s lawsuit.

At the end of May, AIG said it had overstated net income
for the past five years by $3.9 billion, or 10 percent.

Spitzer backed off possible criminal charges against
Greenberg in June after presenting evidence of alleged
wrongdoing in the AIG matter to a state grand jury in the
spring, the Journal said.


Source: reuters



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