It might come as no surprise that a major international insurance giant gets involved in fraud, after all there are massive profits to be made by manipulating the markets.
But AIG was being sued in a class action lawsuit alleging that they were involved in price manipulation, anti-competitive practices, and accounting fraud between 1999 and 2005. They were being sued by three Ohio pension funds but they've now settled the claim avoiding a court case.
They've agreed to pay out almost three quarters of a billion dollars - a billion is one followed by nine zeros. That astronomical sum would be a scandalous admission of the kind of morality followed by the major industrialists, but the real scandal is that AIG is also the insurance giant that was propped up by US government loans.
The US insurance giant was bailed out by the US government to the tune of $182.3 billion (those nine zeros again) so that the US now owns 80% of the company.
So the really clever bit is that 80% of the cost of paying for the fraudulent activity is stumped up by the US government who gets the revenue from the US public. State sponsored fraud settlements! That's a new innovation for corporate capitalism. As long as you come clean, after the state has bailed you out, you get to keep the proceeds of the fraud, keep your reputation intact, keep control of your assets, and have someone else pay the fine.
Sounds like a real result for the fat cats!