Greenberg Transferred $2 Billion in AIG Shares to Wife

Former head of American International Group Inc., Maurice '"Hank'' Greenberg gave his wife 41.4 million of his shares in the insurance company, according to a regulatory filing.

AIG's board forced Greenberg, 79, to relinquish his posts as president and CEO on March 14, and he retired as the company's chairman two weeks later. Greenberg transferred the shares to his wife, Corinne P. Greenberg, on March 11, according to his filing Tuesday with the Securities and Exchange Commission. The shares are worth $2.2 billion, based on AIG's current stock price.

At Tuesday's deposition, Greenberg invoked his Fifth Amendment rights against self-incrimination in response to all questions during the 45 minute session, according to a person who attended the meeting but asked not to be identified by name.

"All the alarms are going off, and red flags are waving, when he makes such a huge transfer at the exact same time that he's under civil lawsuit scrutiny and criminal scrutiny,'' Ajamie said. "This large of a transfer, even in isolation, would garner regulatory scrutiny, but in the context of the criminal and civil issues, the warning bells are waking up people from here to China.''

In the transaction at the center of the probe, AIG purchased reinsurance from General Reinsurance Corp. in the fourth quarter of 2000 and first quarter of 2001. Investigators have said that AIG used the deals to pump up its reserves when markets were uneasy about the company's outstanding liabilities.

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