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) -- Former

American International Group


Chairman and CEO Maurice "Hank" Greenberg has agreed to pay $15 million to the

Securities and Exchange Commission

to settle charges of past "accounting irregularities," according to the SEC.

As part of the settlement, former AIG CFO Howard Smith will also reportedly pony up $1.5 million to the SEC.

Greenberg, of course, was forced to step down in 2005 amid a probe by then-New York Attorney General Eliot Spitzer into accounting irregularities. AIG was also forced to restate its earnings and in 2006 paid more than $1.6 billion to settle state and SEC claims it misled investors.

Greenberg had been subpoenaed by the SEC in July of 2007 on a continuing investigation related to the irregularities, but had consistently denied any wrongdoing.

AIG, whose stock soared by 63% yesterday -- on a day in which outsize gains were also seen by such disparate firms as

Fannie Mae

( FNM),

Freddie Mac

( FRE), the

CIT Group






Whole Foods

( WFMI) and

American Axle


-- continued that climb today. Shares of AIG rose by $2.65, or more than 12%, to reach $24.65 in mid-morning trading.

Joseph Woelfel contributed to this report.

-- Reported by Ty Wenger in New York


Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Joseph Woelfel contributed to this report.