Spitzer Goes After AIG

New York Attorney General Eliot Spitzer has filed civil charges against American International Group (AIG) and its former CEO, Maurice "Hank" Greenberg. Spitzer claims that AIG used false transactions in its financial statements to mislead regulators and investors. AIG's former CFO Howard Smith has also been named as a defendant in the case. "The irony of this case is that AIG was a well-run and profitable company that didn't need to cheat," stated Spitzer. "And yet, the former top management routinely and persistently resorted to deception and fraud in an apparent effort to improve the company's financial results." AIG's lawyers are currently getting ready to file the company's annual report with the Securities and Exchange Commission. The report has already been delayed three times and must be presented by next Tuesday. The company said that the false financial reporting will reduce its value by as much as $2.7 billion. As MSN Money latest ebusiness news