Ex-AIG CEO Greenberg wins temporary delay in NY fraud case

Fri Oct 11, 2013 10:13am EDT
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By Karen Freifeld

NEW YORK (Reuters) - Former American International Group (AIG.N: Quote) Chief Executive Maurice "Hank" Greenberg on Thursday won a short reprieve from New York's case accusing him of orchestrating sham transactions at AIG.

State appeals court Associate Justice David Friedman granted Greenberg's request to halt pre-trial proceedings in the case until a panel of the court can consider his request.

The ruling is the latest twist in an eight-year old case in which the New York attorney general is seeking to hold Greenberg accountable for allegedly improper accounting at the insurance giant.

Friedman's decision will only be in effect for a couple of weeks, until a full appeals court panel decides whether to postpone the case while it decides whether to remove the judge overseeing the case, Justice Charles Ramos.

Greenberg claims that Ramos is biased against him. His lawyers asked the judge to recuse himself. But last week, the judge refused to do so.

The former CEO now wants the appeals court to reverse Ramos's decision to keep himself on the case.

Greenberg's lawyers argue Ramos has at least created the appearance of partiality, prejudging the case in a way that would preclude him from presiding over a fair trial. They also claim he has made decisions based on inadmissible evidence.

Attorney David Boies, who represents Greenberg, said in a statement that his client was pleased the appeals court judge agreed to hold up the proceedings.   Continued...

Former CEO of American International Group Inc, Maurice "Hank" Greenberg, checks his phone inside a car after leaving a building in downtown New York where he was deposed by the Attorney General's office March 10, 2010. REUTERS/Jessica Rinaldi