Former AIG boss Greenberg to face fraud trial

The former boss of American International Group, Maurice "Hank" Greenberg has to face a fraud trial in relation to transactions at the insurance company, a US court of appeal has ruled.

The New York attorney general's office has been pursuing the case for more than a decade, under the wide-reaching state law known as the Martin Act.

That legislation gives the New York attorney general broad powers to bring civil and criminal action against almost anyone that has business affecting New York State.

The attorney general's office is looking to hold Greenberg accountable for alleged sham transactions at AIG.

Greenberg captained AIG for about 40 years before being toppled in 2005.

In 2006, the company coughed up $1.64bn to settle state and federal investigations into its business practices.

This was the second occasion the court has opined on the case.

"We again hold that the Attorney General's claims against defendants withstand summary judgment and, therefore, should proceed to trial," said Judge Leslie Stein in a written summary for New York's Court of Appeals.

Greenberg argues the case should have been finished back in 2013, when an AIG shareholder settlement was approved.