AIG settles fraud claims for $126m

http://www.guardian.co.uk/business/story/0,,1359002,00.htm
David Teather in New York
Thursday November 25, 2004
"http://www.guardian.co.uk"

American International Group, the world's largest insurance firm, yesterday agreed to pay $126m (£67m) to settle allegations that the company helped clients to commit accounting fraud.

The allegations centered on two clients: PNC Financial Services Group and mobile phone distributor Brightpoint. In both cases, federal investigators claimed AIG had helped them to fraudulently inflate their profits.

AIG has been hit by a series of scandals.

The Wall Street Journal reported yesterday that federal prosecutors in New York are investigating chairman Hank Greenberg for allegedly manipulating the firm's share price ahead of an acquisition in 2001.

The company is also among several big insurance firms named in a civil lawsuit by New York attorney general Eliot Spitzer against brokerage Marsh & McLennan. The suit accuses Marsh of bid rigging and taking payoffs from insurance firms in return for directing business their way.

All logos and trademarks in this site are property of their respective owner. FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: www.law.cornell.edu/uscode/17/107.shtml