AIG Says Indicted Employee Is Suspended - New York Times
October 6, 2005
AIG Says Indicted Employee Is Suspended
Filed at 3:12 p.m. ET
NEW YORK (Reuters) - American International Group Inc. (AIG.N) said it has suspended David Pinkerton, an employee indicted on Thursday for alleged violations of the Foreign Corrupt Practices Act by U.S. authorities in a case related to a $15 million investment.
AIG, the world's largest insurer by market value, said no charges had been brought against the company itself.
Pinkerton, a managing director in the AIG Global Investment Group, is on administrative leave pending resolution of the charges, AIG said.
Pinkerton pleaded not guilty to the charges in U.S. District Court for the Southern District of New York.
AIG said the charges involved an Azerbaijan privatization program that was brought to Pinkerton's group by Omega Partners Advisors, a New York hedge fund. AIG, as co-investor, contributed about $15 million of a total $180 million invested in 1998.
AIG said no client money was involved.
When AIG discovered in 1999 that it had been defrauded, it sued a person involved in the fraud and has cooperated fully with the investigation by the U.S. Attorney's office, the company said in its press release.