Corp-Ethics.com - Report: World's largest insurer under investigation

Company	American International [Company Info]
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Date	Issue	Title
30th Sep 2004	Fraud Investigation	World's largest insurer under investigation

Report

The world's largest insurer by market value is the target of a criminal investigation by the US Justice Department.

American International (AIG) is accused of helping a banking client commit fraud and keep about $762m (£522m) of bad loans off its balance sheet.

AIG says it did nothing wrong while analysts say the firm's actions fall into a legal grey area. The Securities Exchange Commission is also investigating the case.

PNC Financial Services paid $115m last year to settle criminal charges brought by the Justice Department on grounds that it had fraudulently moved the loans off its books, inflating its profit by $155m.

The special purpose "vehicles" under investigation are similar to those used by collapsed energy giant Enron to hide debt.

Other Reports on American International
Date	Issue	Company	Report
10th Feb 2006	Fraud Investigation	American International	Insurer AIG in $1.6bn settlement
13th Apr 2005	Fraud Investigation	American International	AIG boss gave wife $2bn in shares

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