Ohio Attorney General Jim Petro has sued former American International Group boss Maurice Greenberg and his wife Corinne to rescind the transfer of millions of Mr. Greenberg's AIG shares to his wife that took place just days before he stepped down as chief executive.
The stock transfer, which was described as Mr. Greenberg's "gift" to his wife, consisted of 41 million shares of AIG common stock worth more than $2.6 billion. The transaction took place just two days before Mr. Greenberg relinquished his role as AIG's chief executive in March.
The demand by Mr. Petro is related to the class action suit which the attorney general is already prosecuting on behalf of the Ohio Public Employees Retirement System, the State Teachers Retirement System of Ohio, and the Ohio Police and Fire Pension Fund and AIG investors. It was filed in the U.S. Federal Court for the Southern District of New York, in New York City.
"We are seeking to stop this suspect transaction of a large block of stock and put it under the control of a receiver until the end of the case." Mr. Petro said.
Mr. Petro noted that the suit against Mr. Greenberg is brought under the New York Fraudulent Conveyance Statute and seeks to both annul the "questionable transfer" of AIG shares to Mrs. Greenberg and to appoint a receiver who will retain custody of those shares until the end of the class action lawsuit.
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