Ex-AIG Chief Could Face SEC Action

Maurice 'Hank' Greenberg has received a notice from the agency indicating it may press civil charges stemming from a criminal case against former AIG and Swiss Re executives.
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Updated from 9:31 a.m. EDT

Former

AIG

(AIG) - Get Report

CEO Maurice "Hank" Greenberg may face civil charges stemming from a criminal case involving fraudulent transactions between the company and Swiss insurer General Re,

The Wall Street Journal

reported Wednesday.

The

Securities and Exchange Commission

has sent what is known as a Wells notice to Greenberg, indicating it may take action against him. The notification came a day after a federal judge in the criminal case said sufficient evidence had been presented to conclude a conspiracy to boost AIG's financials started with a phone call from Greenberg, an unindicted alleged co conspirator in the criminal case, the

Journal

reported.

Four former executives of General Re, owned by

Berkshire Hathaway

(BRK.A) - Get Report

, and one ex-AIG official were convicted earlier this year of making AIG's capital reserves appear larger than they were through fraudulent insurance deals in 2000 and 2001.

Greenberg left AIG in 2005, as it was under investigation for its accounting practices. The following year, AIG paid $1.6 billion to settle claims.

Greenberg remains AIG's largest shareholder, however, and a vocal critic of the firm, which has registered

billions in losses

tied to mortgages and credit derivatives in the first quarter. The insurer on Tuesday said it was raising $20 billion through the sale of common stock, convertible and hybrid securities.

Greenberg responded to the losses by criticizing the company's management and saying

AIG was "in crisis"

in a letter filed with the SEC.

Like Wall Street banks

Merrill Lynch

(MER)

and

Citigroup

(C) - Get Report

, AIG's first-quarter losses came as a result of writedowns to the value of residential mortgage-backed securities, but also super senior credit default swaps, agreements to take on the risk of debt issued by a third party in exchange for most of the payment.

AIG shares recently were down 1.7% to $37.49.

This article was written by a staff member of TheStreet.com.