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  #11  
Old 01-07-2018, 10:30 AM
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Mary Pat Campbell
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Here's something from 2017:

https://www.cbsnews.com/news/aig-mau...ud-settlement/

Quote:
February 10, 2017, 5:36 PM

Former AIG head admits role in $500M accounting fraud

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.

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.

......
The Gen Re transaction was done for the purpose of increasing AIG’s loss reserves, and the Capco transaction was done for the purpose of converting underwriting losses into investment losses,” Greenberg, 91, said in a statement on Friday. “I knew these facts at the time that I initiated, participated in and approved these two transactions.”

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  #12  
Old 01-07-2018, 10:34 AM
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Mary Pat Campbell
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And here is a presentation from CAS from 2009:

https://www.casact.org/education/spr...outs/young.pdf

Quote:
In particular, engaged in "two sham insurance
transactions" that gave investors the impression the
company had larger reserves for claims than it did.
The point was that the reserves were boosted, on paper.

Quote:
The Phone Call (Napier)

Greenberg asked Ferguson to temporarily transfer
loss reserves to AIG:

 Amount of $200 to $500 million
 To occur by year end 2000
 To last 6 to 9 months
 AIG should incur no losses (i.e., the deal
should be riskless)
There's a lot more details in the slides.
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  #13  
Old 01-07-2018, 02:20 PM
TDH TDH is offline
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Thanks!
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  #14  
Old 01-17-2018, 03:42 PM
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@Fergie - if you're out there, the CAS needs you!
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  #15  
Old 01-17-2018, 04:19 PM
CuriousGeorge CuriousGeorge is offline
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Quote:
Originally Posted by Marcie View Post
@Fergie - if you're out there, the CAS needs you!
LOL!
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