Court order issued to protect probe records
WASHINGTON (Reuters) ? The US Securities and Exchange Commission has won a court order to protect documents related to its investigation of insurer American International Group.
Concerned about the security of key records, especially in AIG facilities in Bermuda, the SEC got the order from the US District Court in New York against AIG, former chief executive Maurice Greenberg, pictured above, and AIG-linked group C.V. Starr Co. Inc.
AIG said on Sunday it had learned of efforts to remove documents and information from its Bermuda offices without permission. AIG said it had informed authorities.
An internal AIG memo obtained by Reuters last month told staffers in Bermuda that ?no documents are to be destroyed and no files are to be removed? without management approval.
Mark Schonfeld, director of the SEC?s New York office, said, ?This order will ensure the security and integrity of documents is preserved and that relevant evidence will be available in our ongoing investigation.?
In an interview, Schonfeld said, ?It prohibits them from doing anything to interfere with us getting the documents and it sets up a procedure for documents offshore to be secured, brought to the United States, copied and produced to us.?
AIG, Mr. Greenberg and Mr. C.V. Starr ? an AIG-linked company reportedly involved in compensation arrangements for top AIG executives ? all agreed to the order, the SEC said.
A lawyer for Starr said his client was pleased with the order, which he said gives the company access to its entire file, allowing it to cooperate with the SEC and the New York attorney general?s office.
An AIG representative could not immediately comment on the SEC action.
AIG last week admitted to accounting errors that could lead to a $1.7-billion reduction in the company?s book value. The company has been under investigation by the SEC, the Justice Department and New York Attorney General Eliot Spitzer.
Bermuda?s financial regulator said on Wednesday it had launched its own investigation of AIG.
Among transactions being probed is a 2000-2001 reinsurance deal AIG struck with General Re Corp. ? a unit of billionaire Warren Buffett?s Berkshire Hathaway ? that authorities suspect AIG may have booked improperly.
A lawyer for Mr. Greenberg was not immediately available for comment.