AIG also known as “American International Group” is an insurance company that still exists today. However from 2001 to 2004, the companies CEO Maurice “Hank” Greenberg was responsible for accounting fraud, stock price manipulation and bid-rigging. Greenberg inflated profits by replacing loans with overall revenue within the financial statements. Furthermore, he convinced large traders to manipulate the stock price of AIG. Despite manipulating roughly 4 billion dollars in revenue, Greenberg simply had the option to step down in 2005 at the age of 80.
After stepping down from AI, Greenberg settled with a few companies in regards to the fraud; however it was only in 2016, that his case was finally brought to court. In the final settlement both Mr. Greenberg as well as CFO at the time Eliot Spitzer acknowledged their role in illegally approving two transactions that in turn manipulated the stock price of AIG from 2001-2004. Despite the damages they caused to both pension funds and individual investors, both men were merely forced to give up a combined 9.9 million dollars in which they received as performance bonuses! Greenberg at age 91 did not get away with his crime; however he will receive no jail time. Do you believe the punishment fits the crime?
Smith, Randall. “Former A.I.G. Executives Reach Settlement in Accounting Fraud Case.” The New York Times. The New York Times, 10 Feb. 2017. Web. 05 Mar. 2017.
Website: https://www.nytimes.com/2017/02/10/business/dealbook/former-aig-executives-reach-settlement-in-accounting-fraud-case.html?_r=0