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Judge Says Greenberg Had Role in AIG-Gen Re Case

Posted on 20 May 2008

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A federal judge said in a recent ruling that the government in a trial earlier this year presented "sufficient evidence" for a jury to conclude that a conspiracy to fraudulently boost the financials of American International Group Inc. (AIG) started with a phone call by former Chief Executive Maurice R. "Hank" Greenberg.

This is the first time a judge has implicated Greenberg in a case which convicted five former insurance executives of participating in a sham deal between insurance giant AIG and reinsurer General Re Corp.

Mr. Greenberg hasn't been charged and has maintained his innocence. He was identified by prosecutors as an unindicted alleged co-conspirator.

A spokesman for Mr. Greenberg said he "did seek to buy a loss portfolio from Gen Re," which is a "normal transaction in the insurance industry," but that "as evidence in the case demonstrated, it was three conspirators at Gen Re who appear to have created a fraudulent transaction for their own purposes in mid-November 2000."