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News
February 13, 2017

After 12 Years of “Chasing” Former AIG CEO, NY AG Settles Case for “Legal Equivalent of a Lousy T-shirt”

In 2005, former state AG Eliot Spitzer started the civil fraud case against former AIG CEO Hank Greenberg as part of “his revenge campaign against Mr. Greenberg for daring to criticize his prosecutions against business,” writes the Wall Street Journal. After 12 years of legal battles, Greenberg finally reached a $9 million settlement with current NY AG Eric Schneiderman.

“The entire sorry episode shows how easily the law can be abused when prosecutors pursue cases for political fame rather than justice.”

The article also highlights the “abusive nature of New York’s Martin Act, which lets prosecutors prove civil fraud without showing intent to deceive.” The WSJ argues the Martin Act “is an affront to basic fairness… the courts should strike it down if New York’s politicians are too rapacious to repeal it.”

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