A New York grand jury is considering criminal charges in a probe of insurer American International Group Inc., which has said improper accounting inflated its net worth, according to people familiar with the matter.
New York Atty. Gen. Eliot Spitzer is presenting evidence to the jury, which will consider whether to issue indictments, said the sources, who declined to be identified.
Joseph Umansky, an AIG senior vice president, testified in exchange for immunity from charges that might stem from the proceedings, the sources said.
Spitzer and the Securities and Exchange Commission subpoenaed AIG in February, and Chief Executive Maurice "Hank" Greenberg was ousted the next month. The grand jury moves Spitzer's probe into a criminal phase, increasing the pressure on potential defendants to testify against current and former colleagues.