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Member, Beacon International Group, Ltd.
TO THE EDITOR: Maurice “Hank” Greenberg has always rigorously denied participation in or knowledge of any fraud connected to a reinsurance transaction between AIG and Gen Re some 10 years ago. As recognized in the opinion of Justice (Charles E.) Ramos, filed last week, no one has ever directly disputed Mr. Greenberg's assertions.
Thus, it is not surprising that Justice Ramos found in Mr. Greenberg's favor on this issue in denying the attorney general's motion for summary judgment. This lack of evidentiary support and the inability of the attorney general to muster a single witness to directly refute Mr. Greenberg's denial indicates that the outcome of any trial will also follow suit.
The Capco (Reinsurance Co. Ltd.) transaction, which has been deemed impermissible by Justice Ramos on an entirely novel theory, was structured and reviewed by 20 different attorneys at AIG. The evidence conclusively establishes that Mr. Greenberg was specifically advised that the form of the transaction would meet the requirements of all legal, regulatory and tax laws. As any chief executive officer, Mr. Greenberg had a right to rely upon this advice from his experts. Inexplicably, the opinion of Justice Ramos rejects this fundamental principle of corporate governance.
Mr. Greenberg is confident that his appeal will re-establish the standards governing corporate executive reliance and responsibility and the appropriateness of his conduct.
Robert G. Morvillo
Attorney for Maurice “Hank” Greenberg
Principal at Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer P.C.