Spitzer Rips AIG and Greenberg Workers Compensation FraudMonday, June 6, 2005
Here is New York Attorney General Eliot Spitzer’s complaint alleging fraud against mega workers compensation insurance carrier AIG and its former CEO, Hank Greenberg. Thanks to Matthew Lerner and his New York Civil Law Blog for bringing it to my attention.
If the allegations are to be believed, it appears that Greenberg was a rogue CEO who would not take the legal advice of his own lawyers when they told him that AIG was defrauding the New York Workers Compensation system. If you read the complaint in detail, look at factual allegation #93. It alleges that AIG had secret “side agreements” with “customers” to disguise workers compensation premiums as auto premiums. Does this mean employers were part of a conspiracy to defraud the workers compensation system to lower their insurance rates? I wonder what the New York State Business Council has to say about this. The silence is deafening.
I’ve settled many claims with AIG over the years. I have always found their workers compensation adjusters tough but fair. Its a shame Greenberg has given the company a whopper of a black eye.