American International Group Inc. (AIG) announced on Thursday it has been informed by the United States Attorney for the Southern District of Indiana that it is a target of a federal grand jury investigation.
According to the U.S. Attorney, “the investigation concerns ‘non-traditional insurance’ or ‘income smoothing’ products marketed by AIG that were directed at creating agreements with businesses that would appear to be insurance and accounted for as insurance, but did not involve any actual risk transfer.
More specifically, the investigation is directed at a contract between AIG and Brightpoint Inc.” that was previously investigated by the Securities and Exchange Commission (SEC).
AIG resolved the SEC’s investigation into the matter by a settlement that was announced on Sept. 11, 2003.
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