The Eliot Spitzer Fraud
How Greenberg is Being Covered By A Mere Mock Prosecution
(The News of Greenberg’s Resignation)
Conveniently, Greenberg together with his contacts has been able to hoist a company lawyer into the position of criminal prosecutor. That fellow’s name is Eliot Spitzer, posing as a rabid guardian of the criminal code, but in reality doing nothing else than prosecuting serial killers for shoplifting and otherwise sitting on his hands to let the law rot. If these people hope that the truth will drop dead or go away they are mistaken. The truth is knocking loudly on their door and calling their name.
Eliot Spitzer’s prosecution against Greenberg and AIG is an ersatz prosecution – a sham intended as a diversion. The idea behind this is that if Spitzer appear aggressive enough and the media convey this image convincingly, any true and meaningful reporting of AIG’s and Greenberg’s terroristic and treasonable felonies can be avoided. In other words, Eliot Spitzer, a former partner of AIG’s corporate lawfirm Skadden Arps, who some say is a crooked operation, is doing everything to save a major client of his former lawfirm. Or in short: friends help friends. Eliot Spitzer has been provided with a Citizens’ Complaint about the criminal aspects of 9-11-1, including numerous details about the specific and tangible insurance fraud involving Silverstein, Blackstone Group, Greenberg, Kissinger together with a research DVD full of data. Spitzer is stubbornly refusing to act on the evidence and is trying to take refuge to a mere mockery of prosecution.
The press (the Christian Science Monitor, the New York Times) has indicated that AIG is much too big to get the same treatment as Enron did. It is pointed out that criminal prosecution broke up the accountant firm of Enron, Arthur Andersen. It is pointed out that there can be no desire to break up AIG. The Christian Science Monitor, „A Top Insurance Company as the New Enron?“ (April 01, 2005), at
„Because AIG is so massive and important to the financial world, regulators will have to tread carefully. The company’s main business is providing reinsurance, that is, it insures insurance companies. This helps the industry to spread its risk among many large and financially sound companies so a single event does not become a financial disaster for one company.
Also, because of AIG’s huge size, lawyers don’t think the government will bring a criminal charge against the company as it did for Arthur Andersen, Enron’s accountant. The criminal charge was a death sentence for the accountant.“
Further, the Christian Science Monitor ventures to predict a bleak future for the insurance giant, AIG:
„Before its legal troubles, AIG had begun an advertising campaign to become more well-known to Americans. Its most recent logo is ‚We know money.’ And, it brags it is the financial organization to choose for your ‚great-great-great-great-great grandchild.’ Now, lawyers expect it is likely to be fighting class-action lawsuits and irate regulators as it battles to survive.
The apple of dischord is a deal between Greenberg/AIG and another grandee of the American insurance industry, Warren Buffett. Details are reported in the press. This and other deals amount to a $1.77 billion accounting fraud which actually has been admitted by AIG. As a consequence of this fraud and the insurance investigation of Eliot Spitzer, Maurice Greenberg resigned as the all-powerful CEO of AIG on March 15, 2005; and he resigned his position as non-executive AIG Chairman on April 3, 2005.
Until Greenberg’s resignation, the Greenberg family (Greenberg Sr. and his two sons Jeffrey and Evan) together with Warren Buffett control the better part of the U.S. insurance industry. Jeffrey Greenberg was CEO and chairman of the world’s second-largest insurance broker Marsh & McLennan (resigned in October 2004). Evan Greenberg is President and CEO of Ace Limited, a Bermuda-based insurer. Warren Buffett owns and controls General Reinsurance.
CNN writes about the investigation, Report: AIG CEO Steps Down (March 15, 2005),
„AIG was mentioned in the case brought against Marsh & McLennan by New York Attorney General Eliot Spitzer, but was not charged. But four former AIG executives have entered guilty pleas to criminal charges stemming from the investigation, along with six others from Marsh & McLennan, Zurich American Insurance Co. and ACE.
Last November, AIG agreed to pay $126 million to settle allegations of securities fraud by the SEC and the Justice Department related to three 2001 transactions it made with PNC Financial Services Group Inc. that allegedly helped the Pittsburgh-based banking company artificially inflate its earnings.
Part of the settlement also went to resolve a similar case involving Brightpoint Inc., a Plainfield, Ind., cell phone distributor.
Under that settlement, an independent monitor is examining AIG's books to see if there are any other questionable deals.
AIG, without admitting or denying guilt, also settled civil-fraud charges with the SEC, paying a $10 million fine.
In the latest investigation, AIG has been the focus of a probe by Spitzer, federal prosecutors and the SEC into the use of so-called finite insurance, or financial reinsurance, which critics say could be used to manipulate earnings.
The transaction under investigation took place between AIG and Berkshire Hathaway Inc.’s General Reinsurance unit four years ago and apparently was intended to shore up AIG's reserves.“
Maurice Greenberg joined AIG in 1960 and became its President in 1967. He became its Chairman in 1989. With Greenberg at the helm, AIG grew from a small company into one of the world’s largest and most profitable financial-services company with a market capitalization of $168.5 billion. Greenberg Sr. owns nearly 2% but through offshore companies controls about another 12% of the stock of AIG.
The connection with Warren Buffett is all the more suspicious in light of the substantiated indication of CIA money laundering through a bank partly owned by Berkshire Hathaway, Wells Fargo Bank, and the strange ongoings at the Offutt Air Base on 9-11-1 where Buffett met with President George W. Bush.
According to reports in the New York Times, Eliot Spitzer has stated that the scandal will be settled under civil law without any criminal prosecution or investigation. The is an attempt to defuse a problem of criminal responsibility that to my mind cannot work. In my opinion it is dictated by an egregious conflict of interest of Spitzer and his old law firm of Skadden Arps who do not wish to eliminate a major client, AIG by disclosing the true facts.
The New York Times reports something extremely suspicious about Greenberg, „How a Titan of Insurance Ran Afoul of the Government“ (April 4, 2005),
namely Greenberg considering taking the Fifth Amendment:
„By the accounts of people who have spoken with him, Mr. Greenberg, who did not agree to an interview for this article, ranges over bewilderment, rage and selfpity from the turn of events. In recent weeks, he has told A.I.G. directors that his lawyer is advising him to take the Fifth Amendment rather than testify in a broad inquiry, people involved in the case said.“
If you read the dossier below, you might consider the following statements by Gretchen Morgenson in the New York Times, „A.I.G.: Whiter Shade of Enron“ (April 3, 2005),
to be a nervous newspaper joke:
„Of that we can be sure. A.I.G., after all, is a real company with global operations, generating genuine profits from a variety of financial enterprises. As companies go, Enron was all smoke and mirrors; A.I.G. is substance.“
NO! Of one thing we can be sure: If AIG goes down the tubes then the inside terror cell behind 9-11-1 will thus be yanked out of its hiding in secrecy. At the same time those funny little green papers called the dollar will become cherished commodities for cooking and toilet paper.
Can Eliot Spitzer stem the tide? Is it all just mental? We think not...