Spitzer Says AIG Misled Public
WASHINGTON (Reuters) - New York Attorney General Eliot Spitzer on Sunday accused American International Group Inc.'s (AIG.N: Quote , Profile , Research ) once powerful chairman of misleading the public about some of the company's dealings and said his investigation will turn on "what we will prove -- or can prove -- that (he) knew at the time." "That company was a black box run with an iron fist by a CEO who did not tell the public the truth. That is the problem," Spitzer said on ABC-TV's "This Week with George Stephanopoulos." "We have powerful evidence, we will proceed with it," Spitzer said of the investigation of AIG and former Chairman and Chief Executive Maurice "Hank" Greenberg. Spitzer said it was still uncertain whether the investigations would lead to any indictments. But he rejected the idea, put forward recently by Greenberg's lawyer, that the dealings at issue in the investigation were the result of accounting mistakes. "The evidence is overwhelming that these were transactions created for the purpose of deceiving the market. We call that fraud," Spitzer said. "It is deceptive. It is wrong. It is illegal." The comments came days before state and federal investigators are scheduled to interview Greenberg and billionaire Warren Buffett as part of the probe. Along with the U.S. Securities and Exchange Commission, Spitzer for months has been looking at AIG's accounting, ranging from a deal it struck with Buffett's Berkshire Hathaway Inc. (BRKa.N: Quote , Profile , Research ) to transactions with offshore reinsurers. In Sunday's television interview, Spitzer reiterated that he viewed Buffett as a witness in the case, not a suspect. And he confirmed reports that a subsidiary of one of Buffett's companies had turned over "very powerful and substantial evidence" as part of the investigation. Greenberg announced on March 28 that he would retire as AIG's chairman, and two days later the company acknowledged years of improper accounting. Investigators want to pinpoint Greenberg's involvement in initiating questionable transactions, though the case remains "wide open" and criminal charges might never be filed, a person familiar with the matter has said. Spitzer also reiterated that he hoped authorities could reach a "civil resolution" with the insurance company. Some of Spitzer's remarks came in response to recent comments made by David Boies, a lawyer representing Greenberg in the investigation. Boies said on PBS television's "Charlie Rose" show that any problems with the transactions were the result of bad accounting and had not "greatly influenced the market or misled people." Boies was not immediately available for comment.
Quelle "Spitzer Says AIG Misled Public" : reuters.com
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