Did former AIG CEO Maurice “Hank” Greenberg just blow up his settlement yesterday with the SEC through comments made on his behalf following the settlement?
The New York Times reports that shortly after the SEC’s announcement of the settlement, in which Greenberg agreed to settle the case without admitting or denying the allegations against him, “Mr. Greenberg issued a defiant statement saying he had ‘no responsibility’ for the fraud at A.I.G., which he ran for about four decades ending in 2005.” The SEC has already shot back that Greenberg’s statement mischaracterizes the settlement, and that “under the governing law, the charge against Mr. Greenberg as a control person with respect to AIG’s alleged securities fraud requires his culpable participation in the underlying fraud.”
See the potential problem brewing here? Full details are available in this post on my Enforcement Action blog over at Compliance Week.