American International Group (AIG) one of the largest insurance companies in the US has agreed to pay $725 million settlement from a Class Action lawsuit which began in 2004.
The allegations AIG engaged in bad accounting practices, fraud, bid-rigging and stock tampering from the Security and Exchange Commission, US Justices Department and the New York States Attorney Office, investigation.
Since the fall of 1999 to the spring of 2005, AIG used deceptive fraud in accounting practices for maneuvering clients to preferred insurers with large profitable payoffs and rigged bids for insurance contracts from their insurers. Two AIG executives pleaded guilty to criminal charges in connection to the illegal fraud conduct.
This settlement was created by the government which owes 80 percent of AIG, bailouts of a stimulus packages in 2008, plus a Federal Reserve bailout. Basically tax payer’s money from a failed banking industry and taxpayer stimulus. AIG pays the fine but admits no guilt.
The opinion expressed in this commentary
Article are solely those of Michael Coker