NY court: Case against ex-AIG execs can continue

Recent Cases

New York's attorney general can continue his legal effort to bar two former American International Group Inc. executives from the securities industry and forfeit any improperly gained profits, the state's highest court ruled Thursday.

The Court of Appeals for the second time refused to dismiss the lawsuit originally filed in 2005 by then-Attorney General Eliot Spitzer, ruling it should go to trial.

The suit claims ex-AIG chief executive Maurice "Hank" Greenberg and ex-chief financial officer Howard Smith had engaged in fraudulent reinsurance transactions to conceal from investors a deteriorating financial condition.

AIG itself resolved state charges as part of a $1.64 billion agreement with regulators in 2006. The insurance giant was bailed out by the federal government in the 2008 financial crisis.

Greenberg and Smith settled related federal Securities and Exchange Commission complaints without admitting wrongdoing in 2009.

Their attorneys challenged the state lawsuit, arguing that New York's Martin Act against securities fraud authorizes neither a permanent industry ban nor disgorgement of profits, and that releases from other settlements barred further financial forfeit.

"As we have previously stated, in an appropriate case, disgorgement may be an available 'equitable remedy distinct from restitution' under the state's anti-fraud legislation," Judge Leslie Stein wrote. "Moreover, as with the attorney general's claim for an injunction, issues of fact exist which prevent us from concluding, as a matter of law that disgorgement is unwarranted."

The court rejected another dismissal motion two years ago, concluding there was sufficient fraud evidence for trial.

Related listings

  • Egypt military court sentences 8 to death

    Egypt military court sentences 8 to death

    Recent Cases 05/31/2016

    A security official and the website of state newspaper Al-Ahram say an Egyptian military court has sentenced to death eight alleged Muslim Brotherhood members on terrorism charges. The Sunday verdict sentenced another 12 to life in prison and another...

  • Court upholds $3M judgment against Gerber Products Co.

    Court upholds $3M judgment against Gerber Products Co.

    Recent Cases 05/29/2016

    A sharply divided Arkansas Supreme Court on Thursday said a baby food manufacturer must pay more than $3 million to workers for the time they spent dressing and undressing into uniforms and protective gear. In a 4-3 ruling, the high court upheld a lo...

  • Swedish court upholds arrest warrant for Julian Assange

    Swedish court upholds arrest warrant for Julian Assange

    Recent Cases 05/25/2016

    A Swedish court on Wednesday rejected a request to overturn the arrest warrant of WikiLeaks founder Julian Assange because there were no new circumstances to consider. The Stockholm District Court said it made the decision because Assange is still wa...

Victorville CA DUI Lawyers - Drunk Driving Defense Attorney

The outcome of a DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.

If you fail a sobriety test or have a blood alcohol level above 0.8%, you are considered to be driving under the influence in which you will be arrested. During this time you will be read your Miranda rights and it is crucial to exercise your right to remain silent. As they say, “anything you say can and will be held against you in court.” The courtroom takes no mercy on drunk drivers and any statement you make during your arrest will only damage your case.

The charges you are facing for a DUI range from fines, a 12-month suspension on your license and worst-case scenario, prison time. Your attorney will be able to analyze your situation to decide the best way to go about your case.

Our Victorville CA DUI defense attorneys know the tricky ways to challenge all of the DUI tests and know how to claim improper collection of evidence. We will be able to negotiate on your behalf and free you from charges and help you keep your drivers license. The DUI process can last up to several months, we can make this process easier on you.