Former American International Group CEO Maurice “Hank” Greenberg must stand trial for allegedly orchestrating sham transactions at the insurer, New York’s top court ruled on Thursday, as the long-time financial industry titan failed in his 11-year-old quest to escape civil fraud charges.
The New York Court of Appeals also ruled that the state could seek to recoup from Greenberg, 91, and co-defendant Howard Smith, 71, AIG’s former chief financial officer, tens of millions of dollars in bonuses and interest covering the 2000-2005 period when the alleged fraud occurred. More than $55 million may be at stake.
In addition, the court said the state could seek to ban Greenberg and Smith from the securities industry and from serving as officers or directors of public companies.
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