Friday, May 22, 2009


* Policyholders of American International Group (AIG) in California filed a complaint Thursday asking the Los Angeles Superior Court to order the nation’s largest insurance and financial conglomerate to stop engaging in reported further unlawful, fraudulent and unfair business practices under a California law that was adopted to protect consumers. The court action was filed by an insurance broker who purchased and sold over $15 million of AIG life insurance.

AIG reportedly channeled funds from its California companies into a lending program that put over $75 billion of AIG insurance assets at risk, using the companies’ bonds and investments to speculate in high risk real estate mortgage securities. According to the suit, AIG lost the gamble and taxpayers have paid over $180 billion. The suit charges that AIG is draining funds from its California insurance companies in a futile effort to keep the financial side of the firm afloat.

Also named in the suit is AIG's decade-long auditor PricewaterhouseCoopers. The accounting firm is charged with reportedly systematically providing AIG with phony audit opinions that were filed with the State Insurance Commission.

  • Ventura County (Calif.) District Attorney Gregory Totten announced that the Ventura County District Attorney's Office Auto Insurance Fraud Unit arrested and charged Jose Herrera, 29, of Canoga Park, with one count of felony auto insurance fraud.

    It is alleged that on Dec. 15, 2008, Herrera committed auto insurance fraud when he contacted his Ventura-based insurance carrier, Alliance United, and falsely reported that someone had stolen his 1997 Jeep.

    Herrera could be sent to state prison for up to five years if convicted of felony auto insurance fraud.

1 comment:

phoenix dentist said...

Geez, more bad new for AIG. When will their fortunes change?? Perhaps that new guy from MetLife can change their luck. It's going to be a long road back before they regain credibility with the general public, for sure.