AIG fraud case cleared for trial

Former CEO and CFO of the company charged with hiding company losses

New York’s fraud case against former American International Group (AIG) CEO Maurice Greenberg has been cleared for trial as of Tuesday. The case began in 2005 when the N.Y. attorney general accused Greenberg and former AIG CFO Howard Smith of hiding the company’s losses through fake transactions.

The N.Y. appeals court gave the defendants at least a little relief in its latest ruling, which said that a lower court was too hasty when it held Greenberg and Smith responsible for damages over one such transaction with Capco Reinsurance Co., a deal that allegedly helped AIG cover up more than $200 million in losses.

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