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Crime Pays

Posted by Larry Doyle on August 6, 2009 11:44 AM |

The Wall Street Journal reports that former AIG CEO Hank Greenberg has settled accounting charges brought by the SEC for $15 million. Greenberg to Pay $15 Million to Settle SEC Fraud Case.  For Greenberg, that $15 million settlement is the equivalent of leaving a nice tip after a good meal.

Recall that Greenberg recently won a case against AIG over claims to $4.3 billion of AIG stock. As Bloomberg reported on July 8th, AIG Looting Case Against Starr Was Weak.

The fact is Hank Greenberg has always been viewed as an arrogant, ruthless individual who ran AIG as his personal fiefdom. As was shared with me and I wrote this past February 24th in a post, “How Does One Lose $125 Billion?”:

It is believed by some AIG veterans that under Hank’s watch the books were cooked via a money laundering scheme centered offshore and executed through an office in New Hampshire.

The accounting malfeasance supposedly went back to the 1970s.

More than a little disconcerting.

$15 million is hardly a rounding error for Mr. Greenberg.


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