The Securities and Exchange Commission announced Tuesday that a federal court has approved the distribution of more than $843 million to harmed investors at insurer American International Group (AIG).
From SEC: The SEC charged AIG with accounting fraud on Feb. 9, 2006, alleging that the company materially falsified its financial statements from at least 2000 until 2005 through a variety of sham transactions and entities, and reported materially false and misleading information about its financial condition. The court entered a final judgment against AIG on Feb. 17, 2006, to which AIG consented without admitting or denying the allegations. Pursuant to the final judgment, AIG paid a total of $800 million ($700 million in disgorgement and $100 million in penalties). The U.S. District Court for the Southern District of New York entered an order on June 14, 2007, authorizing the Commission to establish a Fair Fund to include all of the funds paid by AIG.
The AIG Fair Fund’s court-appointed estimates that checks will be mailed to more than 257,000 affected AIG investors within the next few months.