AIG Ordered to Pay Defrauded Investors $1.2b

" ... The SEC alleged that the insurer falsified its financial statements from at least 2000 until 2005, and misled the public on its financial status. ... "

"Too big to fail?" Too rancid to exist.

- AC

Reuters
May 21, 2009

WASHINGTON, USA: A federal court has approved the distribution of more than US$843 million (S$1.2 billion) to harmed investors at insurer American International Group (AIG), the United States Securities and Exchange Commission (SEC) said on Tuesday.

The court estimates that cheques will soon be mailed to more than 257,000 AIG investors who were affected by an alleged accounting fraud at the company, the SEC said.

AIG was charged with fraud in 2006. The SEC alleged that the insurer falsified its financial statements from at least 2000 until 2005, and misled the public on its financial status.

The firm, which did not admit or deny the allegations, had repaid its ill-gotten gains and paid penalties to the government. - REUTERS

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