Ethics Newsline®

NEW YORK
Insurance firm American International Group (AIG) last week fired two of its top executives after they refused to cooperate with an investigation into possible accounting fraud at the firm.

Chief financial officer Howard Smith and reinsurance vice president Christian Milton were fired “pursuant to company policy that requires employees to cooperate with government authorities” on company issues, a spokesman said.

The two men, who already had been placed on leave, were terminated after invoking their Fifth Amendment right against self-incrimination, reported the New York Times.

At least three government offices — the New York attorney general, the Justice Department, and the Securities and Exchange Commission — are investigating the company for bookkeeping irregularities.

Under pressure, AIG chief executive Maurice Greenberg, who headed the company for nearly 40 years, resigned earlier this month. He still serves as the firm’s non-executive chief, noted the Times.