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Deal With Spitzer by Former AIG Exec Could Put Pressure on Greenberg

The recent decision of Joseph Umanksy, a senior vice president in the corporate division of American International Group Inc. (AIG) and president of A.I.G. Reinsurance...
May 17, 2005

The recent decision of Joseph Umanksy, a senior vice president in the corporate division of American International Group Inc. (AIG) and president of A.I.G. Reinsurance Advisers, to cooperate with an investigation by New York Attorney General Eliot Spitzer into transactions that may have been used to improve the appearance of the company's financial reports could lead to charges against Maurice Greenberg, who recently resigned as head of AIG, according to a report in the New York Times. Umansky is reported to have agreed to cooperate with Spitzer's office in exchange for immunity from prosecution.  Robert Mintz, a former federal prosecutor and head of the corporate criminal defense group at the firm of McCarter & English, said that the deal suggests that the authorities believe that they can readily make a case against Greenberg.  The Department of Justice, the Securities and Exchange Commission and the New York State Insurance Department are also investigating AIG's accounting.

 

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