A federal court has approved the distribution of more than $843 million to investors who were damaged at insurer American International Group. Checks will soon be mailed to more than 257,000 AIG investors who were affected by an accounting fraud at AIG. AIG, which has been propped up by billions of dollars in taxpayer funds, was charged with accounting fraud in 2006. The SEC alleged that the insurer falsified its financial statements from at least 2000 until 2005 and reported misleading information about its financial condition.
AIG must repay its ill-gotten gains, as well as penalties to the government, and that’s good. In 2007, a federal court authorized the SEC to establish a “fair fund” to distribute the money to harmed AIG investors. Dick D’Anna, director of the SEC’s office of collections and distributions, said in an agency statement:
The commission continues to utilize the tools that Congress provided to ensure that funds are returned to harmed investors to the greatest extent possible.
Companies like AIG – as a result of unregulated greed – have gotten away with a great deal of wrongdoing. It’s good to see victims finally having their day for a change!
Source: Insurance Journal
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