This week marked the start of the trial of AIG’s CEO Hank Greenberg for his involvement in the accounting scandal that happened in the 2000s at the company. The case has been pushed out for so long as Greenberg’s attorneys appealed a total of nine pre-trial motions, where each appeal meant months of waiting. And now finally the trial will begin.
The case against the legend of the insurance industry seems like more of a test/case study for the government. The case of the prosecution will be based on an old law called the Martin Act where the State prosecutors have to prove that fraud happened and do not have to prove intent of fraud. If they are successful, this would set precedence for future cases against Wall Street tycoons. So its not only Mr. Greenberg’s trial, it is a test run for all such future cases.