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November 28, 2005 at 07:00 PM
New York authorities will not be bringing criminal charges against Maurice Greenberg, the former chairman of American International Group Inc., in connection with Greenberg’s efforts to increase AIG’s stock price, a state spokesman says.[@@]
New York Attorney General Eliot Spitzer in May filed a suit against AIG, New York, alleging that Greenberg and former AIG Chief Financial Officer Howard Smith used fraudulent business transactions and improper accounting practices to bolster AIG’s stock price.
At that time, Spitzer said AIG management had “routinely and persistently resorted to deception and fraud.”
News organizations speculated that Spitzer might be planning to bring criminal charges, but Spitzer spokesman Darren Dopp now says the issue of criminal charges had “just got confused” by the media.
Spitzer said in April that he thought the AIG matter would be resolved in civil court, Dopp says.
Attorneys working on the civil action against the company are making progress toward resolving it and “anticipate something happening before the end of the year,” Dopp says.
Both Greenberg and Smith have invoked their Fifth Amendment rights against self-incrimination and have declined to answer questions from investigators.
