SEC v AMERICAN INTERNATIONAL GROUP, et al


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Keywords & Phrases

CaseNo: 34-48477, Defendant: American International Group, Inc. Release No.: AAER-1857, Plaintiff: SEC, UniqueCaseRef: SEC>34-48477, Aig, Brightpoint, Commission, Policy, Accounting, Exchange Act, Insurance, Securities Exchange Act, Premium, Auditors, Purpose, Lmu, Coverage, Loss, Losses, Pursuant, Retroactive Coverage, Independent Consultant, Brightpoint Policies, International Group, Anticipation, White Paper, United States, First Restatement, Financial Statements, Internal Controls, Insurance Recoveries, Prospective Fidelity, Administrative Proceedings, Imposing Remedial Sanctions , ContentID: 120255633

Case Documents

2003-09-11

SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below ] ItemID: 132923

19 pages
HTML

Total Documents: 1 document , 19 pages

Price: $ 19.95

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1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS

BRIGHTPOINT
COMMISSION
POLICY
ACCOUNTING
EXCHANGE ACT
INSURANCE
SECURITIES EXCHANGE ACT
PREMIUM
AUDITORS
PURPOSE
LMU
COVERAGE
LOSS
LOSSES
PURSUANT
RETROACTIVE COVERAGE
INDEPENDENT CONSULTANT
BRIGHTPOINT POLICIES
INTERNATIONAL GROUP
ANTICIPATION
WHITE PAPER
UNITED STATES
FIRST RESTATEMENT
FINANCIAL STATEMENTS
INTERNAL CONTROLS
INSURANCE RECOVERIES
PROSPECTIVE FIDELITY
ADMINISTRATIVE PROCEEDINGS
IMPOSING REMEDIAL SANCTIONS

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Securities Exchange Act of 1934
Release No. 48477 / September 11, 2003

Accounting and Auditing Enforcement
Release No. 1857 / September 11, 2003

Administrative Proceeding
File No. 3-11254
     _________________________________________________________________



   In the Matter of

   AMERICAN INTERNATIONAL,
   GROUP, INC.,


   Respondent

     _________________________________________________________________

   ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS, MAKING FINDINGS, AND
   IMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER PURSUANT TO
   SECTION 21C OF THE SECURITIES EXCHANGE ACT OF 1934 AS TO AMERICAN
   INTERNATIONAL GROUP, INC.

                                     I.

   The Securities and Exchange Commission ("Commission") deems it
   appropriate that public administrative proceedings be, and hereby are,
   instituted against American International Group, Inc. ("AIG") pursuant
   to Section 21C of the Securities Exchange Act of 1934 (the "Exchange
   Act").

                                    II.

   In anticipation of the institution of these administrative
   proceedings, AIG has submitted an Offer of Settlement ("Offer"), which
   the Commission has determined to accept. Solely for the purpose of
   these proceedings and any other proceedings brought by or on behalf of
   the Commission or to which the Commission is a party, and without
   admitting or denying the findings contained herein, except as to the
   Commission's finding of jurisdiction over AIG and the subject matter

SNIPPETS:

ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS, MAKING FINDINGS, AND IMPOSING REMEDIAL

The Securities and Exchange Commission deems it appropriate that public administrative

In anticipation of the institution of these administrative proceedings, AIG has submitted an

This case involves AIG's issuance of a purported insurance policy to Brightpoint, Inc. for

As a result of this concealment, Brightpoint's 1998 financial statements, as reported in the

The parties agreed to combine this "retroactive coverage" with prospective fidelity coverage

The Policy, finalized in January 1999, enabled Brightpoint to record in 1998 an insurance

Although the Auditors questioned whether the policy was insurance at all, they decided at the

The First Restatement expensed the full policy "premium" in the fourth quarter of 1998,

AIG is a holding company that, through its subsidiaries, is engaged in a broad range of

In 1997, AIG developed a so-called "non-traditional" insurance product to be underwritten by

The "LMU White Paper," which an LMU founding member distributed to 32 management level AIG

AIG noted Commission regulations for public disclosure of material events and that "uch a

After October 2, 1998, Brightpoint continued to investigate the UK losses and gathered

Within 30 days of the date of this Order, AIG shall employ an independent consultant ll not be structured to facilitate violations of the federal securities laws.

Such Independent Consultant will also recommend any revised or additional internal controls,


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