NY authorities sue AIG and former execs By Chris Sanders NEW YORK (Reuters) - New York authorities on Thursday filed a civil lawsuit against insurer American International Group Inc. (AIG.N: Quote , Profile , Research ) , its former chief executive, Maurice "Hank" Greenberg, and its former chief financial officer, saying they committed fraud and manipulated the books. The suit says Greenberg and former CFO Howard Smith, who were ousted when the investigation first picked up steam, took part in numerous fraudulent business deals that exaggerated the strength of the company's core underwriting business and propped up its stock price. In the first legal action by regulators concerning AIG's recently acknowledged accounting errors, New York Attorney General Eliot Spitzer and New York Insurance Superintendent Howard Mills cited a pattern of fraud at the company, the world's biggest insurer by market value. "The former top management routinely and persistently resorted to deception and fraud in an apparent effort to improve the company's financial results," Spitzer said in a written statement. Company shares rose 3 percent after the announcement as relieved investors found the complaint in line with earlier information already known about the case. For damages, the complaint does not give a dollar amount, but asks for punitive damages, the payback of any gains and restitution to anyone hurt by the fraud described. AIG in a statement said the complaint contained no new claims, adding, "we are pleased that Attorney General Spitzer has recognized our cooperation and has previously indicated his expectations of reaching a civil settlement with AIG." Lawyers for Greenberg said they were reviewing the complaint. "We will respond in due course denying any fraudulent conduct by Mr. Greenberg," his legal team said in a statement. Andrew Lawler, an attorney for Smith, said his client "looks forward to the opportunity to answer and refute the allegations in court." ACCOUNTING PROBE UNDERWAY     Continued ... Quelle "NY authorities sue AIG and former execs" : reuters.com Main page for "NY authorities sue AIG and former execs"