The office of New York attorney general Eliot Spitzer is not likely to bring criminal charges against Maurice Greenberg, the disgraced former CEO of insurer AIG.
The amended charges that are to be filed as part of Mr Spitzer’s lawsuit are likely to reflect further allegations of fraudulent practice that have emerged since the original suit was filed in May 2005. However it now seems unlikely that Mr Greenberg himself will face criminal charges.
However Mr Spitzer’s office confirmed that Mr Greenberg will still face civil charges, as outlined earlier this year when the AIG scandal came to light. Observers agree that, while Mr Spitzer has already shied away from pursuing other criminal fraud cases this year, this is likely to be because the chances of securing a criminal conviction in such complex fraud cases are slim.
Mr Greenberg was forced to stand down after details emerged that AIG had manipulated sales in order to boost its share price.