NEW YORK (MarketWatch) -- Maurice "Hank" Greenberg, the dethroned chief executive of American International Group Inc., in March transferred more than 41 million shares of the insurance giant's stock to his wife, according to a regulatory filing.
The shares -- worth about $2.14 billion, based on Wednesday's closing price of AIG (AIG: news, chart, profile) at $51.83 -- were part of the longtime executive's ongoing estate-planning strategy, according to a person close to Greenberg's legal team who declined to be identified.
It was one of several transfers of AIG stock that Greenberg's made in the past to trusts in the name of his children and other family members, the person added.
The transaction took place on March 11, according to a Form 4 filing made late Tuesday with the Securities and Exchange Commission. that was three days before the company announced Greenberg's departure as CEO amid probes into whether the insurer had manipulated its financial statements to mask its financial condition.
Observers said the transaction was likely to raise questions given that it came in the midst of wide-ranging investigations by state regulators in New York as well as by the SEC.
"This may be perfectly legal, but in the context of these investigations, the timing of the transfer looks suspicious," said Joel Androphy, a lawyer who represents defendants in white-collar criminal and civil cases.
"He appears to be dissipating his assets in anticipation of charges or some type of settlement," added Androphy, a partner at the law firm of Berg & Androphy.
He said that people sometimes transfer shares to spouses, in anticipation of a legal judgment or settlement, to make it harder for creditors to trace their financial assets.
When Greenberg realized he wasn't going to run AIG anymore, he decided to speed up his estate-planning activities, according to the person close to the former executive's legal team.
The gift didn't need to be disclosed until next February under SEC rules, the person claimed. It was disclosed early to illustrate Greenberg's willingness to be transparent and cooperate with investigators, the person said.
New York Attorney General Eliot Spitzer said Sunday in an interview with ABC television that AIG and Greenberg were the main focuses of his investigations.
Certain AIG transactions appear to have been deceptive to the market and would constitute fraud, Spitzer said. He said that depending on what can be proved about what Greenberg knew of the deals, the probes could result in civil or criminal charges against him.
Gruss Ice
Zurück
Weiter
