Running Head: THE AMERICAN INTERNATIONAL GROUP SCANDAL
1
The American International Group Scandal
Lyndon K. Gumbs
Saint Leo University
Author Note
This paper was prepared for Financial & Managerial Accounting, ACC 201, taught by
Professor Neil Hesketh.
THE AMERICAN INTERNATIONAL GROUP SCANDAL 2
The American International Group Scandal
This paper is solely constructed to focus on a limited number of unethical violations and
events committed between 2000 and 2005 by American International Group in (AIG) executives,
entrusted to provide protection for individuals and companies. Throughout, this paper will
attempt to highlight a couple of wrongdoings and accounting frauds committed by the largest
insurance and financial institution in the world. This journey will be accomplished by using
media reviews, scholarly texts and articles. We will examine some of AIG practices, accounting
deception, misuse of pricing and internal principles. The paper will touch on how the Security &
Exchange Commission (SEC) became cognizant of AIG’s malpractices. What can be done to
ensure companies at this level avoid this type of downward spiral into deception?
So, with this in mind …we will go through a brief summary of AIG business history
