According to this article, the FBI investigation with AIG started a few months back and shows past fines paid. The problem stated here, concealing the nature of its transactions with a bank subsidiary and cell phone company.
Hold off on the fire sale of the servers and data bases for now and bring in the forensics, there’s a lot that can be hidden today with the use of sophisticated programmers and software so hopefully there’s enough of an audit trail for the FBI forensics to gather their information and come to a conclusion. BD
Federal investigators have been scrutinizing American International Group since March, focusing on whether the insurance giant knowingly concealed mammoth losses that helped lead to the company's $85 billion federal bailout this month.
In an investor conference call earlier this year, Sullivan called on regulators to overhaul an accounting standard that requires businesses to value such investments at the market price if they were to be sold rather than held in a company's own portfolio for months or years. The provision has forced corporate managers to disclose steep losses on mortgage-related investments this year.
Sullivan got his job after the 2005 ouster of legendary chairman Maurice R. "Hank" Greenberg, who ran the company for four decades and built an empire in 130 countries. Greenberg was forced to step aside after then-New York Attorney General Eliot L. Spitzer and the Securities and Exchange Commission accused him and his company of fraudulent financial reports. An investigation found evidence that the company was playing down losses and risk, using sham transactions to companies that were not independent of AIG. The company settled the case by paying a record $1.6 billion in fines.
In 2004, AIG agreed to pay $126 million to settle another multi-layer probe, in which the SEC and Justice Department alleged that the insurer had engaged in accounting fraud by concealing the nature of its transactions with a bank subsidiary and cellphone company.
FBI Began Investigating AIG in March - washingtonpost.com
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