AIG Unit Says $10M Policy Obtained Through Fraud

Law360, New York (May 13, 2009, 12:00 AM EDT) -- American International Group Inc. unit American General Life Insurance Co. has sued a New Jersey trustee and other defendants for what it says is a pattern of misconduct involving life insurance policies, in this case accusing the defendants of materially misrepresenting the wealth of a woman who applied for a $10 million life insurance policy.

The racketeering, fraud and conspiracy lawsuit, amended Thursday in the U.S. District Court for the District of New Jersey, was initially lodged in July 2008.

According to the amended complaint, the...
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