NEW YORK (CNNMoney.com) -- Insurer American International Group has used its broad range of subsidiaries to donate more than the $5,000 limit on corporate contributions to New York state political candidates, according to a published report.

The New York Times said that by having the donations come from little-known subsidiaries, AIG (Charts) was able to give hundreds of thousands of dollars to candidate such as New York Gov. George Pataki, who is reportedly eyeing a run for president, as well as New York Attorney General Eliot Spitzer, who subsequently investigated AIG and its top officers.

Gov. George Pataki reportedly received $335,000 in donations from AIG and its subsidiaries, despite a $5,000 contribution limit to New York state political candidates from any one company.

N.Y. Attorney General Eliot Spitzer reportedly received $50,000 from AIG and its subsidiaries before he began an investigation of the company.

The paper said that the company used 10 different subsidiaries to donate $50,000 to Spitzer in December 2003. It has not made any contributions to Spitzer, now a candidate for governor, since he conducted an investigation that led to the ouster of AIG Chairman and CEO Maurice "Hank" Greenberg, the paper reported. Spitzer's probe accused Greenberg and AIG of manipulating its accounting practices to raise its stock price.

Pataki received $335,000 from AIG and 33 subsidiaries through six sets of donation, the paper reported.

The use of subsidiaries to make multiple contributions and get around the campaign donation limits complies with the law as interpreted by the State Board of Elections, the paper reports. A spokesman for AIG defended the donation to the paper.

The checks used to make the donations were from a common corporate account and often were even sequentially numbered. AIG spokesman Joe Norton told the paper that the contributions are charged back to each subsidiary's budget, so that, ultimately, the money comes from the subsidiaries. He said the decision on the contributions were made by AIG.

"There's no requirement that decisions about contributions be made by the subsidiaries," Norton told the paper. "The parent company can recommend that a contribution be made."

Campaign finance reformers told the paper the donations violated the spirit if not the letter of the state's campaign finance law.

"This is definitely one of those cases where it fails the common-sense test," Rachel Leon, executive director of Common Cause New York, told the paper.

In 2004, Spitzer probes of AIG and insurance broker Marsh & McLennan (Charts), then headed by Greenberg's son, forced both companies to replace their CEO's.

Spitzer's campaign told the paper its policy is not to accept contributions from anyone who is the subject of an investigation by the attorney general's office, but that it will not return contributions made by companies or individuals before they come under investigation.

Greenberg rep says Spitzer drops most claims