Maurice "Hank" Greenberg, former CEO of American International Group (AIG) is being sued along with former CFO Howard Smith, by New York Attorney General Eliot Spitzer. Spitzer filed a civil suit claiming that the Greenberg and Smith manipulated the company's financial statements by recording fraudulent transactions, in an effort to mislead regulators and investors.
"The AIGs of the world don't want to get bogged down in a lawsuit with the attorney general of New York or the SEC for that matter," said former federal prosecutor Jacob Frenkel. "But for an individual of Mr. Greenberg's stature, the outcome of this case follows him for the rest of his life, which may make the desire for vindication greater."
AIG shares went up 3% yesterday and today added another $1.02, or 1.8% reaching $56.73. The shares are the highest they have been since the end of March.
Chris is a staff writer for latest ebusiness news. 
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