The agreement, announced Friday, calls for Greenberg to pay a total of $9 million to resolve the case. Howard Smith, ex-chief financial officer at the insurance giant, must pay $900,000.
The suit, which was initially filed by former New York Attorney General Eliot Spitzer in 2005, stems from AIG’s earlier admission that it participated in sham transactions between 2000 and 2004. Two of these were deals with General Reinsurance Company and Capco, an offshore entity, and were intended to make AIG’s reserves look healthier than they were by about $500 million.
Maurice “Hank” Greenberg, the former chief executive of American International Group (AIG), is admitting to fraud under a settlement of a long-running lawsuit against the insurance giant filed by New York prosecutors.