Former AIG Head Greenberg Finishes Testifying In Fraud Trial
After six days on the witness stand, Hank Greenberg, the former head of AIG, has finished testifying in his defense against charges that he defrauded investors of half a billion dollars. He left court on Thursday with a scowl.
New York’s Attorney General tried to show that Greenberg oversaw two transactions that hid declines in profits and propped up reserves. In his testimony, the former CEO sought to evade responsibility by saying the transactions were minor, and he was too busy to care. But at the last minute, the State sprang new documents that undermined this claim by showing that Greenberg was involved in similar transactions. Greenberg's attorney, David Boies, maintains that the State's persistence is really about a vendetta.
“I think there’s a certain frustration that the political aspect of it keeps this case going,” Boies said.
State prosecutors appeared pleased with their last minute maneuver and left court with broad smiles.