Former Executive to Pay $15 Million Settlement for Accounting Fraud
Posted on Aug 6, 2009 11:50am PDT
Just announced in Washington by U.S. authorities, former executive of AIG, Maurice "Hank" Greenberg has agreed to pay a $15 million settlement. Greenberg agreed to pay the multi-million dollar settlement after being charged with
accounting fraud.
According to the Securities and Exchange Commission, Greenberg was chief executive and chairman for AIG prior to its breakdown. Greenberg is paying disgorgement and penalties to settle several fraudulent accounting transactions that were made between 2000 and 2005 by the insurance giant. Reports indicate that Greenberg inflated AIG's financial results during that 4 year period.
Former chief financial officer of AIG, Howard Smith, has agreed to pay $1.5 million to settle his criminal chargesd. The Securities and Exchange Commission filed both the charges and settlement in the US District Court for the Southern District of New York.
Prior to being charged with accounting fraud, 84 year old Greenberg has led AIG for over four decades. In March of 2005, he was accused of committing fraud when the company began to collapse due to a global financial crisis from U.S. home mortgages. Last year, the U.S. government intervened by providing AIG with a $170 billion bailout.
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