October 22, 2004

AIG targeted by US Grand Jury, AP reports

AIG (American International Group) says it is the target of a U.S. grand jury probe into "nontraditional" insurance products, according to A.P., the Seattle Times and the New York Times.

In September of 2003, AIG paid $10 million to settle (without admitting) S.E.C. charges that it had aided Brightpoint (Nasdaq CELL), a cell-phone distributor based in Indiana, in falsifying earnings by issuing an "income smoothing" contract.

Sources: Insurer AIG says it's target of federal grand-jury probe (Seattle Times, Oct. 22, 2004). See also: A.I.G. Says It Is Target of Midwest Inquiry (New York Times, Oct. 22, 2004).


Posted by dougsimpson at October 22, 2004 09:05 AM | TrackBack