Given the tumult of the past year, it’s easy to forget that AIG’s troubles go back a lot further than the current financial crisis. In August, an SEC complaint alleged former CEO Maurice “Hank” Greenberg and former CFO Howard Smith were ultimately responsible for a series of improper accounting transactions from 2000 to 2005 that were geared to create the false impression the company had met or exceeded critical earnings and growth benchmarks. The four-year fraud investigation concluded when former Greenberg settled with the SEC and paid $15 million in penalties and disgorgement.
Greenberg, whose name was synonymous with the insurance titan for four decades, did not admit guilt, but consented to a judgment Aug. 6, just hours after the charges were announced. Smith also consented to a judgment and agreed to pay $1.5 million.
