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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.

Updated from 9:31 a.m. EDT



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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.


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



Four former executives of General Re, owned by

Berkshire Hathaway

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, 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.

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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.

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Merrill Lynch




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, 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