Court Order To Greenberg: Hands Off Documents
By Daniel Hays
National Underwriter News
April 8, 2005
The Securities and Exchange Commission said yesterday that it had obtained a court order to prevent American International Group and its former boss Maurice Greenberg from interfering with documents the SEC wants for its accounting probe of AIG.
Also named in the order obtained in U.S. District Court in Manhattan is Bermuda-based C.V. Starr & Company Inc., a private insurer that according to a past finding by New York regulators is the ultimate parent of AIG. Mr. Greenberg, who was replaced last month as chairman and chief executive officer at AIG, heads C.V. Starr.
Prior to the issuance of yesterday's order there were reports that documents were being removed from the AIG offices in Bermuda where C.V. Starr also had space.
The order prohibits those named from interfering with the ability of the commission to obtain ďany and all documents in the respondents' possession or control."
It also provides a procedure for documents outside the United States to be secured, brought to the United States, and produced to the commission and the New York attorney general.
Mark K. Schonfeld, the director of the commission's Northeast regional office, said, "We sought this order in response to reports of the movement of documents subject to this investigation. This order will ensure the security and integrity of documents is preserved and that relevant evidence will be available in our ongoing investigation."
The SEC said commission staff issued subpoenas to Mr. Greenberg, AIG, C.V. Starr and to Starr International Company Inc. (SICO) between March 25, 2005 and April 1, 2005.
According to the order, there is a need for preserving the security, location and integrity of documents relevant to the commission's ongoing investigation and responsive to commission subpoenas.
The order prohibits Mr. Greenberg and the named companies from interfering with the ability of the commission to obtain documents in their possession or control.
With respect to documents as to which there is a dispute among Greenberg, C.V. Starr, SICO and AIG concerning ownership and control, the order prohibits respondents from removing such documents from AIG premises and provides a procedure by which such documents shall be handled.
Specifically, the order incorporates a letter agreement among those parties, the commission and the New York attorney general setting forth an agreed procedure by which the documents will be secured, copied, brought to the United States, and produced to the commission and the New York attorney general.
Under investigation are finite reinsurance transactions which are suspected of improving the financial picture of AIG, including a number of arrangements with offshore entities.