Former AIG chief lied in court, alleges the insurer’s lawyer

MAURICE “Hank” Greenberg, former chief executive of American International Group (AIG), fabricated documents and lied under oath in a bid to cloud who is the rightful beneficiary of over $4.3bn (£2.6bn) from stock sales, AIG lawyer Ted Wells told a jury yesterday.

Wells said Greenberg’s assertions at trial that the stock was intended for a charitable trust was an attempt to cover up a pledge made 35 years earlier.

AIG says Starr International, a private firm once affiliated to the insurer, established a trust to fund a retirement plan in the 1970s. But he said Greenberg and other Starr voting shareholders abandoned the compensation plan in 2005 within days of Greenberg’s ousting from the insurer. The case continues.