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Judge delays ruling on attempt to keep AIG report from Greenberg

(Bloomberg) ? A New York judge delayed ruling on a federal prosecutor?s attempt to prevent Maurice Greenberg, former chairman of American International Group Inc., from seeing an AIG report linking him to a $3.9 billion earnings restatement.

New York State Supreme Court Judge Charles Ramos agreed on March 3 to consider Assistant US Attorney Michael Dry?s request for a temporary restraining order after ruling in favour of giving Greenberg access to the document last month. A hearing was delayed from yesterday to March 13.

Greenberg, 80, had initially been scheduled to get the report today. He?s seeking the alleged evidence as he prepares to defend himself against New York Attorney General Eliot Spitzer?s claims that he led an accounting fraud at the world?s largest insurer. Dry?s boss, US Attorney Paul McNulty of the Eastern District of Virginia, is conducting a related probe.

The report was written by two law firms AIG hired to examine whether improper reinsurance transactions were used to smooth earnings.

Ultimately, the New York-based company corrected five years worth of earnings.

Greenberg has argued much of the restatement was unnecessary and driven by fear of regulators.

McNulty, probing a 2000 reinsurance deal between AIG and Berkshire Hathaway Inc.?s General Re unit, wants to prevent the release of certain witness statements included in the report. McNulty charged three former General Re executives and one former AIG executive of conspiring to distort AIG?s finances. All four pleaded not guilty last month.

On February 9 AIG agreed to pay $1.64 billion to settle with Spitzer and federal regulators probing earnings manipulation and sales practices.

AIG spokesman Chris Winans and Greenberg spokesman Howard Opinsky declined to comment. Kathleen Kahoe, a managing assistant US attorney under McNulty, didn?t return a phone call seeking comment.