A spokesman for Maurice Greenberg, American International Group's former chairman, said there would be no comment on a report his attorneys were in settlement talks concerning civil fraud charges by New York authorities.

Mr. Greenberg has been a defendant since 2005 in a suit brought by the Office of the New York Attorney General, accused of a major role in a scheme to artificially pump up AIG's earnings. Mr. Greenberg and former AIG Chief Financial Officer Howard Smith, also a defendant, were accused of personally approving the scheme.

New York-based AIG was let out of the case in 2006, when the carrier agreed to a $1.64 billion settlement with federal and state authorities. Prior to that agreement, the company issued a financial restatement that reduced its net income between 2002 and 2004 by $3.92 billion.

Prior to the suit being filed, Mr. Greenberg was called by the attorney general's office to give a deposition, and he refused to testify--invoking his Fifth Amendment right against self-incrimination.

The Wall Street Journal on Saturday, quoting an unnamed source, said there had been settlement talks involving Mr. Greenberg concerning a possible agreement for him to pay a $100 million penalty.

According to the newspaper, its sources said the possibility of an out-of-court deal was clouded by the state lawyer's demand for a deposition by Mr. Greenberg.

Reportedly discussions by attorneys have not only dealt with the size of a penalty, but also language in a settlement document. Mr. Greenberg has been adamant in denying wrongdoing or guilt in the case.

There was no immediate response to a request for comment from the New York Attorney General's Office, now headed by Andrew Cuomo. The suit was brought when Eliot Spitzer was attorney general.

Mr. Greenberg, who now runs Starr International and C.V. Starr & Company insurance enterprises, has sued his former company over its restatement and the company has countersued.

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Greenberg Settlement Talks Over AIG-Spitzer Suit Reported

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