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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.

LD

  • Sunnybearandpud

    There is nothing more corrupt then the corporation called the U.S. Government Aha…but when you have a government with one set of laws that is different from the laws of its own citizens, you do not have freedom you have a dictatorship. You have the perfect breeding ground for corruption on a grand scale 24-7.
    Repeatedly proven, if you have monies you can purchase yourself out of any trouble anytime and/or anywhere. The government is not going to do anything about it, for that would be opening the doors to the information of the depths of corruption of those in government.

  • Kathy

    Larry, I love the way you call it as you see it.

    Seems like there’s a lot of crime paying on Wall Street. How about writing in future posts about what we can do about it? I’m tired of putting fees in dirty pockets.

  • Larry Doyle

    Kathy,

    I think we are in a transitory stage in our country’s history in which people will have to be heard. We are starting to see this with people aggressively speaking up at town halls and the development of these blogs. I also think the development of the internet radio medium will play into this.

    This development can not happen quickly enough.

    Over and above writing and speaking, I think the public needs to take the game to officials and regulators. Inundating these individuals can be extremely frustrating, but it will ultimately work if the word is spread far and wide. This will take persistence.

    We need to get contact information for those we want to address.

    Stay the course!!






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