AMERICAN supranational GROUP (AIGNameClassRoll No :AMERICAN foreign GROUP (AIGThe Securities and Exchange Commission ( sec ) do compliant stating that the AIG materially falsified its financial statements through sham of effects so that investors may receive attraction with the financial results . Such falsification was do for the period of 2000 to 2005 . An amount of 500 one million million has been added as reserves in the balance sheet which is falsified figureAIG entered with such organization Gen Re which has no economic substance . During the period of fraud , AIG distributed its bunk for corporate acquisition . Such accounting irregularities by AIG caused violations of the federal official securities laws . When the federal and state regulators contacted the AIG about the Gen Re transaction , AIG initiated midla nd investigation and made restatement . AIG clearly admitted for 66 minutes and made restatement .
The AIG agreed that the purpose is to improve financial statements which atomic number 18 essential and hence made improper transactions . As such with the restatement , the AIG reduced its shareholders equity by 2 .26 billionDuring 2003 , the SEC supercharged AIG with respect to securities fraud which is sham and selling policy to satiny point , Inc . The aim of Bright point is to key to embrace to the pubic about false and misleading financial training . Consequently the AIG has been penalized by SEC for 10 mi llion to vacate civil actionsDuring 2004 , ! the SEC again charges the AIG for the securities fraud in conjunction with PNC Financial Services Group , Inc for charge of...If you destiny to modernise a full essay, order it on our website: OrderCustomPaper.com
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