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NEW YORK (CNN/Money) -
A grant of immunity to a former top executive of American International Group by New York Attorney General Eliot Spitzer could cause problems for federal authorities looking at the practices of the embattled insurer, according to a published report.
The New York Times reported that Joseph Umansky, who as president of AIG Reinsurance Advisers, has been granted full immunity from state prosecution for his testimony about practices at the insurer. It said the agreement could cause problems for a parallel investigation being conducted by the Justice Department and the Securities and Exchange Commission.
The paper said that if federal authorities try to prosecute Umansky, they will have to prove the evidence they obtain was not information obtained through the executive's immunized testimony. But the paper said that testimony is included in Spitzer's recently filed civil complaint against the company, former AIG Chairman and CEO Maurice "Hank" Greenberg and the former chief financial officer Howard Smith. The paper said including that testimony in the complaint is a highly unusual move.
"Once Umansky has landed the prize of outright immunity from the state, he and his lawyer will be reluctant to accept anything but that from the feds," Robert Mintz, an expert in white-collar criminal law, told the paper.
Representatives of the Justice Department, S.E.C. and Spitzer's office declined to comment to the paper.
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