Posts tagged "Howard Smith"

AIG Accounting Fraud: No Admissions, Big Fines, Bad Ethics

The former Chief Executive Officer of AIG, Maurice Greenberg and his co-defendant, Howard Smith, AIG’s former chief financial officer, reached a settlement with the State of New York in a case of accounting fraud.

The case, which took more than 10 years to adjudicate ended with the two executives agreeing to fork over $9.9 million in performance bonuses. It sounds impressive until we understand that the state had sought more than $50 million and the executives refused to admit to fraud.

The executives were accused of participating in deals aimed at fooling investors into investing in the AIG company, one of the world’s leading insurance leaders.  Accounting fraud comes in many forms.  At the settlement, the State of New York stated:

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Posted by Chuck Gallagher in Accounting Ethics and tagged , , ,