In 2003, AIG settled a case brought by the SEC and agreed to pay a $10 million civil fine to resolve allegations it fraudulently helped a company falsify its earnings report and hide losses, thus avoiding prosecution at that time.ĪIG was also required to establish a transaction review committee, which answered to an independent consultant appointed by the SEC to review the policies and procedures of that committee and to determine if others used the transactions violated GAAP or obtain a specified accounting or reporting the result. Attorney for the Southern District of Indiana, AIG agreed to settle that matter and to be enjoined from future violations of federal securities laws. Under investigation by the Securities Exchange Commission (SEC) and facing prosecution by the Fraud Section of the United States Department of Justice and the U.S. The company took accountability for deceiving investors and regulators with misleading accounting practices and apologized.ĪIG allegedly took part in bid-rigging schemes, paid secret commissions to insurance brokers to steer the business, used phony insurance deals to burnish its earnings, and misstated the workers’ compensation premiums it collected.ĪIG agreed to settle allegations it helped two customer companies commit accounting fraud. (AIG) agreed to pay a record $1.64 billion to settle claims against it by the SEC and New York state authorities.

Additional Information on AIG SunAmerica AIG Pays $1.64 Billion to Avoid Fraud ProsecutionĪfter a lengthy investigation involving misleading accounting practices, American International Group, Inc. The company claims it provides products and services to more than four million families across the United States. In the 1980s, SunAmerica divested itself of some other insurance operations while expanding into financial advisory services, mutual funds, and retirement products, including annuities and guaranteed investment contracts.ĪIG acquired SunAmerica in 1999 and American General in 2001, combining these two companies with AIG Life to form AIG SunAmerica, now the retirement savings division of AIG. began its financial service operations in 1971 with the acquisition of Sun Life Insurance Company of America, which had been formed in 1890.

AIG’s common stock is listed on the New York Stock Exchange and stock exchanges in London, Paris, Switzerland, and Tokyo. Ranking amongst the top 20 companies in the world with high market capitalization. American General acquired VALIC, a group retirement savings company, in 1977 and Western National Life, an issuer of fixed annuities in the United States, in 1998.Īmerican International Group (AIG) is now a significant competitor in insurance and financial services. In 1972, the company began to focus its expansion efforts on the rapidly increasing retirement savings market. American General Insurance Company (now AIG) has grown primarily through acquisitions.

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