Tuesday, June 2, 2009

AIG Responds to Story About Former CEO's Swiss Foundation

In response to my previous blog post regarding AIG, I received the following email from Mark Herr in AIG's Media Relations department, which I reproduce here with his permission.


Mr. Mayer,

I’m assuming you are the contributor to the Nonprofit Law Prof Blog regarding the New York Post story of Sunday.  

The Post story is wrong. AIG is not trying to claw-back money from charities. AIG isn’t trying to take anything from charities.  It is seeking to recover from SICO more than $4 billion in value that belongs to AIG shareholders and American taxpayers.  Instead of using transparent tactics to delay and confuse, Maurice “Hank”  Greenberg should return the value he took inappropriately or defend his case in open court, for all to see and hear.

On  June 15th Mr. Greenberg will finally have explain in open court why he caused Starr International Company, Inc. (“SICO”) to abscond with 290 million shares of AIG stock after he was forced out of the company for his refusal to cooperate with an accounting investigation.

From 1970 to Greenberg’s ouster in 2005, SICO was the compensation trust for AIG’s employees.  The evidence at the trial will show that during his tenure as AIG’s CEO, Greenberg personally and repeatedly promised that SICO’s AIG shares would always be used only for the purpose of compensating current and future AIG employees.  Yet Greenberg took the shares when he left AIG amid accounting scandals that marked the beginning of AIG’s downfall.  AIG is asking the court to put those shares back into the hands of a reliable trustee who will put the shares to work for AIG and American taxpayers.

Now, with the trial only days away, Greenberg is trying to convince the world that SICO is a charity.   SICO certainly wasn’t a charity before this lawsuit began.  In fact, SICO only donated 0.005% of its worth.  Only after AIG brought this action did SICO suddenly and cynically show charitable tendencies.  Mr. Greenberg is dressing up SICO in a veneer of philanthropy just like a defendant who buys a new suit for the courtroom.

Please correct your blog.


Mark Herr,

AIG Media Relations


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It seems as though he should be taking this up with The Post and not this blog as you were simply relaying previously published information...

Posted by: HJ | Jun 2, 2009 1:06:45 PM

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