Grand jury said to eye AIG execs

Report says ousted CEO, CFO the focus of NY grand jury but not the only targets

May 23, 2005

NEW YORK (CNN/Money) - A New York grand jury is looking at potentially criminal conduct by former top management and other individuals at American International Group Inc., according to a published report Monday. The Wall Street Journal reported that in addition to the possible criminal charges being weighed by the grand jury, regulators continue to prepare a civil complaint as part of the probe of accounting problems at the insurer.

Attorneys from New York Attorney General Eliot Spitzer's office began presenting evidence to a grand jury last week, according to the report. The proceedings could lead to the criminal indictment of one or more individuals but the firm itself is likely to be spared criminal charges, the paper said.

Ousted Chairman and CEO Maurice R. "Hank" Greenberg and former Chief Financial Officer Howard Smith, who was also forced out in March in the wake of the accounting scandal, are the focus of the grand jury, according to the paper, but it said they aren't the sole targets of the grand jury.

AIG senior executive Joseph Umansky has testified under a grant of immunity, the paper reported.

AIG has already announced that an internal probe of accounting practices of some of its transactions would lead it to lower net worth by about $2.7 billion when it reports annual results.

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