Foundation Under Scrutiny Says Its Leaders Acted Appropriately

A charitable foundation chaired by Maurice Greenberg, the former head of American International Group, said it found no wrongdoing by Mr. Greenberg or others in the execution of the will of AIG’s founder, C.V. Starr, The Wall Street Journal reports.

In a report made public today, an independent committee of the Starr Foundation found that the four living executors of C.V. Starr’s estate, including Mr. Greenberg, “acted in good faith and prudently performed their duties.”

Mr. Greenberg is chairman of the Starr Foundation’s board of directors.

“It would not be appropriate, nor would it be in the best interests of the Starr Foundation, to pursue any litigation or other course of action against the executors whether in their capacity as executors or as directors of the Starr Foundation,” the committee’s report said.

The New York Attorney General’s office issued a report in December 2005 in which it found that Mr. Greenberg and others breached their fiduciary duties to the Starr estate and its beneficiary, the Starr Foundation, by selling the estate’s assets for far less than their actual value in transactions in 1969 and in 1970.

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