The Securities and Exchange Commission said it will begin the process of returning $800 million to investors harmed by American International Group Inc.'s failure to properly report earnings over a four-year period.
The distribution dates back to the 2006 settlement agreement between the SEC and AIG over allegations that the New York-based insurer falsified its financial statement during a five-year period from 2000-2005 through a variety of sham transactions and entities involving reinsurance programs that were determined to be loans from Gen Re.
In the 2006 agreement, AIG neither admitted nor denied guilt in exchange for paying a total of $800 into a Fair Fund to reimburse investors.
The SEC said the distribution is expected to be completed by 2009. The funds will be distributed to any person or entity that purchased AIG common stock during the period Feb. 8, 2001 through and including March 31, 2005 who either sold stock at a loss on or after Feb. 14, 2005 or held the stock after March 31, 2005, or did both.
The settlement monies will also be distributed to any purchaser of AIG-affiliated fixed-income securities during the period Feb. 8, 2001 through and including March 31, 2005 who either sold or held stock in March in 2005.
The distribution of the monies is expected to be completed by 2009, the SEC said.
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