Maurice Greenberg is under the legal microscope again. The 85-year-old former American International Group Inc. chairman and chief executive was dealt a setback on Friday as a New York justice's decision held him liable for damages arising from one of two questionable reinsurance transactions from the mid-1990s.

In a ruling on Thursday, Justice Charles E. Ramos of New York State Supreme Court found Greenberg and another AIG exec, Howard Smith, AIG’s former chief financial officer, liable on a transaction that involved an organization called the Capco Reinsurance Co. In a statement, the attorney general’s office alleges that the company hid more than $200 million in losses from an auto warranty insurance program.

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