NU Online News Service, Jan. 20, 10:54 a.m.EST

Maurice “Hank” Greenberg, formerly the chief executive ofAmerican International Group Inc. (AIG), could go on trial in Mayfor his alleged role in a sham reinsurance transaction with Gen ReCorp.

New York State Supreme Court Judge Charles E. Ramos tentativelyset a date for May 2, but Greenberg’s attorneys will reportedly askfor a delay while appeals related to the case are worked out.

Mr. Greenberg and Howard I. Smith, former AIG chief financialofficer, still face allegations related to a $500 million finitereinsurance transaction with Gen Re in 2001 meant to boost AIG’sreserves. The allegations are what are left from former New YorkAttorney General Eliot Spitzer’s investigation of the insurer.

Last October Judge Ramos ruled Mr. Greenberg and Mr. Smith wereliable for damages on a reinsurance contract that allegedly helpedthe insurer hide $200 million in losses from an auto warrantyinsurance program. Mr. Greenberg, who left AIG in 2005, hasdenied any wrongdoing.

Mr. Greenberg, now the head of C.V. Starr & Co., isappealing the ruling.

Four former insurance executives with Gen Re—including formerCEO Ronald Ferguson—and an AIG reinsurance executive were found guilty by a federal jury early in 2008 ofcharges stemming from the alleged bogus finite reinsurancedeal. The convictions are under appeal.

At a December charity event in New York, former New York MayorRudolph Giuliani bashed Mr. Spitzer and called what is being doneto Mr. Greenberg, “one of the great outrages in American legal history.”