The amended complaint filed July 31 in Los Angeles Superior Court by the San
Diego law firm of Aguirre, Morris & Severson
charges AIG with funneling money from insurance operations to gamble in
derivatives. Maria
Severson of Aguirre has said that the suit seeks
to bar AIG from soliciting new business without revealing its financial
status. The New York Times story quotes Mississippi insurance expert and
forensic accountant Thomas Gober, who is assisting the San Diego firm in
the suit. "The financial [statements] I have reviewed lead me to
believe that AIG's equity is enormously negative," Gober says. "But for
funding from the government, AIG is insolvent."
Mike Aguirre of the firm points out that the federal government's feeding of money to AIG is essentially "subsidizing wrongdoing." The company took more than $180 billion from the government and continues unlawful activities, "manipulating liabilities and assets in violation of insurance regulations." Also, state regulators, who are supposed to monitor insurance companies, have been neutralized, he says.
Excerpted from SanDiegoWeeklyReader.com.
Mike Aguirre of the firm points out that the federal government's feeding of money to AIG is essentially "subsidizing wrongdoing." The company took more than $180 billion from the government and continues unlawful activities, "manipulating liabilities and assets in violation of insurance regulations." Also, state regulators, who are supposed to monitor insurance companies, have been neutralized, he says.
Excerpted from SanDiegoWeeklyReader.com.
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