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Thursday March 31, 10:53
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PricewaterhouseCoopers to provide SEC with audit documents of AIG
(by Brigitta Zulfitzler)
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The SEC handed subpoena to PricewaterhouseCoopers LLP hunting for documents concerning to transactions between AIG and Berkshire Hathaway Inc.’s General Re unit. The insurance transactions which took place in December, 2000, and March, 2001, are under investigation by the SEC’s enforcement division and the New York State Attorney General’s office. The transactions boosted AIG’s claims reserves by $500 million when investors were concerned that AIG’s reserves have been in deficiency. This caused the suspicion of investigators about so called finite reinsurance conducted by the AIG executives in order to give the company a misleading financial appearance.
John Heine, a SEC spokesman, as well as PricewaterhouseCoopers spokesman David Nestor, declined to comment on investigations and on the firm’s audit work for AIG.
AIG is one of PricewaterhouseCoopers’ largest audit clients. The company paid the firm $44.8 million in 2003, including $33.7 million in audit fees, according to AIG financial reports.
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