Jury, Spitzer Probing Possible AIG Criminal Indictments

May 20, 2005

A Reuters report on Friday stated that a New York grand jury is investigating potential criminal conduct by individuals at insurance company American International Group Inc. (AIG).

According to the report, New York Attorney General Eliot Spitzer was offering evidence that could result in indictments of one or more individuals, Bloomberg News and the Wall Street Journal also reported, noting unnamed sources. Spitzer’s office has not commented on the proposed evidence.

The company is under investigation by Spitzer, the U.S. Securities and Exchange Commission and other authorities trying to understand how and why it had trouble handling its accounting.

According to reports, AIG Senior Vice President Joseph Umansky has given testimony in exchange for immunity from charges possibly coming out of the proceedings, according to Bloomberg.

Shares of AIG jumped 85 cents, to $53.85, in late Friday trading at the New York Stock Exchange.

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