Ex-AIG chief Greenberg may face SEC charges

NEW YORK (Reuters) - Maurice "Hank" Greenberg, former chief executive of American International Group Inc (AIG.N: Quote, Profile, Research, Stock Buzz), may face civil charges for his alleged role to improperly boost the insurer's financials, a spokesman for Greenberg said on Wednesday.

Greenberg received a "Wells notice" from the U.S. Securities and Exchange Commission on Friday, indicating possible charges over his role in reinsurance transactions between AIG and Berkshire Hathaway's (BRKa.N: Quote, Profile, Research, Stock Buzz) (BRKb.N: Quote, Profile, Research, Stock Buzz) General Re Corp unit.

A Wells notice indicates that the SEC is considering civil charges, and gives the recipient a chance to mount a defense.

"We remain confident of our position on the merits, and we believe that none of the remaining issues are material to AIG's financial statements," Robert Morvillo, Greenberg's lawyer, said in an e-mailed statement.

An SEC spokesman also did not immediately return a call seeking comment.

On Friday, U.S. District Judge Christopher Droney, who oversaw a trial that led to convictions of former AIG and General Re executives accused of helping AIG inflate reserves, said there was sufficient evidence to show a conspiracy started with a phone call from Greenberg.

The fraud accusations stem from a 2000 transaction in which AIG and General Re executives attempted to boost AIG's loss reserves to make the world's largest insurer look better to investors.

A former AIG executive and four former General Re executives, including Chief Executive Ronald Ferguson, were accused of conspiring to inflate AIG'S loss reserves by $500 million through fraudulent reinsurance transactions.

Greenberg was ousted as AIG's chairman and chief executive in 2005 amid an investigation into alleged financial misconduct.